Title 11 — Bankruptcy

Chapter 5 — Creditors, the Debtor, and the Estate

§ 523. Exceptions to discharge

Statutory text

A discharge under section 727, 1141, 1192 1 1228(a), 1228(b), or 1328(b) of this title does not discharge an individual debtor from any debt—

for a tax or a customs duty—

of the kind and for the periods specified in section 507(a)(3) or 507(a)(8) of this title, whether or not a claim for such tax was filed or allowed;

with respect to which a return, or equivalent report or notice, if required—

was not filed or given; or

was filed or given after the date on which such return, report, or notice was last due, under applicable law or under any extension, and after two years before the date of the filing of the petition; or

with respect to which the debtor made a fraudulent return or willfully attempted in any manner to evade or defeat such tax;

for money, property, services, or an extension, renewal, or refinancing of credit, to the extent obtained by—

false pretenses, a false representation, or actual fraud, other than a statement respecting the debtor’s or an insider’s financial condition;

use of a statement in writing—

that is materially false;

respecting the debtor’s or an insider’s financial condition;

on which the creditor to whom the debtor is liable for such money, property, services, or credit reasonably relied; and

that the debtor caused to be made or published with intent to deceive; or

for purposes of subparagraph (A)—

consumer debts owed to a single creditor and aggregating more than $500 2 for luxury goods or services incurred by an individual debtor on or within 90 days before the order for relief under this title are presumed to be nondischargeable; and

cash advances aggregating more than $750 ² that are extensions of consumer credit under an open end credit plan obtained by an individual debtor on or within 70 days before the order for relief under this title, are presumed to be nondischargeable; and

for purposes of this subparagraph—

the terms “consumer”, “credit”, and “open end credit plan” have the same meanings as in section 103 of the Truth in Lending Act; and

the term “luxury goods or services” does not include goods or services reasonably necessary for the support or maintenance of the debtor or a dependent of the debtor;

neither listed nor scheduled under section 521(a)(1) of this title, with the name, if known to the debtor, of the creditor to whom such debt is owed, in time to permit—

if such debt is not of a kind specified in paragraph (2), (4), or (6) of this subsection, timely filing of a proof of claim, unless such creditor had notice or actual knowledge of the case in time for such timely filing; or

if such debt is of a kind specified in paragraph (2), (4), or (6) of this subsection, timely filing of a proof of claim and timely request for a determination of dischargeability of such debt under one of such paragraphs, unless such creditor had notice or actual knowledge of the case in time for such timely filing and request;

for fraud or defalcation while acting in a fiduciary capacity, embezzlement, or larceny;

for a domestic support obligation;

for willful and malicious injury by the debtor to another entity or to the property of another entity;

to the extent such debt is for a fine, penalty, or forfeiture payable to and for the benefit of a governmental unit, and is not compensation for actual pecuniary loss, other than a tax penalty—

relating to a tax of a kind not specified in paragraph (1) of this subsection; or

imposed with respect to a transaction or event that occurred before three years before the date of the filing of the petition;

unless excepting such debt from discharge under this paragraph would impose an undue hardship on the debtor and the debtor’s dependents, for—

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

an obligation to repay funds received as an educational benefit, scholarship, or stipend; or

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;

for death or personal injury caused by the debtor’s operation of a motor vehicle, vessel, or aircraft if such operation was unlawful because the debtor was intoxicated from using alcohol, a drug, or another substance;

that was or could have been listed or scheduled by the debtor in a prior case concerning the debtor under this title or under the Bankruptcy Act in which the debtor waived discharge, or was denied a discharge under section 727(a)(2), (3), (4), (5), (6), or (7) of this title, or under section 14c(1), (2), (3), (4), (6), or (7) of such Act;

provided in any final judgment, unreviewable order, or consent order or decree entered in any court of the United States or of any State, issued by a Federal depository institutions regulatory agency, or contained in any settlement agreement entered into by the debtor, arising from any act of fraud or defalcation while acting in a fiduciary capacity committed with respect to any depository institution or insured credit union;

for malicious or reckless failure to fulfill any commitment by the debtor to a Federal depository institutions regulatory agency to maintain the capital of an insured depository institution, except that this paragraph shall not extend any such commitment which would otherwise be terminated due to any act of such agency;

for any payment of an order of restitution issued under title 18, United States Code;

incurred to pay a tax to the United States that would be nondischargeable pursuant to paragraph (1);

incurred to pay a tax to a governmental unit, other than the United States, that would be nondischargeable under paragraph (1);

incurred to pay fines or penalties imposed under Federal election law;

to a spouse, former spouse, or child of the debtor and not of the kind described in paragraph (5) that is incurred by the debtor in the course of a divorce or separation or in connection with a separation agreement, divorce decree or other order of a court of record, or a determination made in accordance with State or territorial law by a governmental unit;

for a fee or assessment that becomes due and payable after the order for relief to a membership association with respect to the debtor’s interest in a unit that has condominium ownership, in a share of a cooperative corporation, or a lot in a homeowners association, for as long as the debtor or the trustee has a legal, equitable, or possessory ownership interest in such unit, such corporation, or such lot, but nothing in this paragraph shall except from discharge the debt of a debtor for a membership association fee or assessment for a period arising before entry of the order for relief in a pending or subsequent bankruptcy case;

for a fee imposed on a prisoner by any court for the filing of a case, motion, complaint, or appeal, or for other costs and expenses assessed with respect to such filing, regardless of an assertion of poverty by the debtor under subsection (b) or (f)(2) of section 1915 of title 28 (or a similar non-Federal law), or the debtor’s status as a prisoner, as defined in section 1915(h) of title 28 (or a similar non-Federal law);

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 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

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;

that—

is for—

the violation of any of the Federal securities laws (as that term is defined in section 3(a)(47) of the Securities Exchange Act of 1934), any of the State securities laws, or any regulation or order issued under such Federal or State securities laws; or

common law fraud, deceit, or manipulation in connection with the purchase or sale of any security; and

results, before, on, or after the date on which the petition was filed, from—

any judgment, order, consent order, or decree entered in any Federal or State judicial or administrative proceeding;

any settlement agreement entered into by the debtor; or

any court or administrative order for any damages, fine, penalty, citation, restitutionary payment, disgorgement payment, attorney fee, cost, or other payment owed by the debtor; or

for injury to an individual by the debtor relating to a violation of chapter 77 of title 18, including injury caused by an instance in which the debtor knowingly benefitted financially, or by receiving anything of value, from participation in a venture that the debtor knew or should have known engaged in an act in violation of chapter 77 of title 18.

For purposes of this subsection, the term “return” means a return that satisfies the requirements of applicable nonbankruptcy law (including applicable filing requirements). Such term includes a return prepared pursuant to section 6020(a) of the Internal Revenue Code of 1986, or similar State or local law, or a written stipulation to a judgment or a final order entered by a nonbankruptcy tribunal, but does not include a return made pursuant to section 6020(b) of the Internal Revenue Code of 1986, or a similar State or local law.

Notwithstanding subsection (a) of this section, a debt that was excepted from discharge under subsection (a)(1), (a)(3), or (a)(8) of this section, under section 17a(1), 17a(3), or 17a(5) of the Bankruptcy Act, under section 439A 3 of the Higher Education Act of 1965, or under section 733(g) 3 of the Public Health Service Act in a prior case concerning the debtor under this title, or under the Bankruptcy Act, is dischargeable in a case under this title unless, by the terms of subsection (a) of this section, such debt is not dischargeable in the case under this title.

Except as provided in subsection (a)(3)(B) of this section, the debtor shall be discharged from a debt of a kind specified in paragraph (2), (4), or (6) of subsection (a) of this section, unless, on request of the creditor to whom such debt is owed, and after notice and a hearing, the court determines such debt to be excepted from discharge under paragraph (2), (4), or (6), as the case may be, of subsection (a) of this section.

Paragraph (1) shall not apply in the case of a Federal depository institutions regulatory agency seeking, in its capacity as conservator, receiver, or liquidating agent for an insured depository institution, to recover a debt described in subsection (a)(2), (a)(4), (a)(6), or (a)(11) owed to such institution by an institution-affiliated party unless the receiver, conservator, or liquidating agent was appointed in time to reasonably comply, or for a Federal depository institutions regulatory agency acting in its corporate capacity as a successor to such receiver, conservator, or liquidating agent to reasonably comply, with subsection (a)(3)(B) as a creditor of such institution-affiliated party with respect to such debt.

If a creditor requests a determination of dischargeability of a consumer debt under subsection (a)(2) of this section, and such debt is discharged, the court shall grant judgment in favor of the debtor for the costs of, and a reasonable attorney’s fee for, the proceeding if the court finds that the position of the creditor was not substantially justified, except that the court shall not award such costs and fees if special circumstances would make the award unjust.

Any institution-affiliated party of an insured depository institution shall be considered to be acting in a fiduciary capacity with respect to the purposes of subsection (a)(4) or (11).

Footnotes

1 So in original. Probably should be followed by a comma.
2 See Adjustment of Dollar Amounts notes below.
3 See References in Text note below.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1978
Pub. L. 95–598 · 92 Stat. 2549
Enacted · 11 U.S.C. § 523
Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2590
Source evidence
Code source credit
Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2590
1979
Pub. L. 96–56 § 3 · 93 Stat. 387
1. Substituted · 11 U.S.C. § 523(a)(8)
  Pub. L. 96–56 substituted “for an educational 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 a nonprofit institution of higher education” for “to a governmental unit, or a nonprofit institution of higher education, for an educational loan” in the provisions preceding subpar. (A)
2. Inserted · 11 U.S.C. § 523(a)(8)
  Pub. L. 96–56 inserted “(exclusive of any applicable suspension of the repayment period)” after “before five years” in subpar. (A)
Source evidence
Code amendment note
Subsec. (a)(8). Pub. L. 96–56 substituted “for an educational 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 a nonprofit institution of higher education” for “to a governmental unit, or a nonprofit institution of higher education, for an educational loan” in the provisions preceding subpar. (A) and inserted “(exclusive of any applicable suspension of the repayment period)” after “before five years” in subpar. (A).
Enacted provision · exact public law section
Sec. 3. Section 523(a)(8) of title 11, United States Code, as enacted by section 101 of Public Law 95–598, is amended— (1) by striking out “to a governmental unit, or a nonprofit institution of higher education, for an educational loan” and inserting instead “for an educational 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 a nonprofit institution of higher education”; and (2) in subparagraph (A), by inserting “(exclusive of any applicable suspension of the repayment period)” after “before five years”.
1981
Pub. L. 97–35 title XXIII § 2334(b) · 95 Stat. 357
Substituted · 11 U.S.C. § 523(a)(5)(A)
Pub. L. 97–35 substituted “law, or otherwise (other than debts assigned pursuant to section 402(a)(26) of the Social Security Act);” for “law, or otherwise;”
Source evidence
Code amendment note
Subsec. (a)(5)(A). Pub. L. 97–35 substituted “law, or otherwise (other than debts assigned pursuant to section 402(a)(26) of the Social Security Act);” for “law, or otherwise;”.
Enacted provision · exact public law section
(b) Section 523(a)(5)(A) of title 11, United States Code, is amended by inserting before the semicolon the following: “(other than debts assigned pursuant to section 402(a)(26) of the Social Security Act)”.
1984
Pub. L. 98–353 § 454(a)(1) · 98 Stat. 333
1. Struck · 11 U.S.C. § 523(a)(2)
  Pub. L. 98–353, § 454(a)(1), in provisions preceding subpar. (A), struck out “obtaining” after “for”
2. Substituted · 11 U.S.C. § 523(a)(2)
  Pub. L. 98–353, § 454(a)(1), in provisions preceding subpar. (A), substituted “refinancing of credit, to the extent obtained” for “refinance of credit,”
Source evidence
Code amendment note
Subsec. (a)(2). Pub. L. 98–353, § 454(a)(1), in provisions preceding subpar. (A), struck out “obtaining” after “for”, and substituted “refinancing of credit, to the extent obtained” for “refinance of credit,”.
Enacted provision · exact public law section
(1) in paragraph (2), by— (A) striking out “obtaining” each place it appears; and (B) striking out “refinance of credit,” and inserting in lieu thereof “refinancing of credit, to the extent obtained”; and
1984
Pub. L. 98–353 § 307(a)(1) · 98 Stat. 333
Struck · 11 U.S.C. § 523(a)(2)(A)
Pub. L. 98–353, § 307(a)(1), struck out “or” at end
Source evidence
Code amendment note
Subsec. (a)(2)(A). Pub. L. 98–353, § 307(a)(1), struck out “or” at end.
Enacted provision · exact public law section
(1) in subparagraph (A) by striking out “or” at the end thereof,
1984
Pub. L. 98–353 § 307(a)(2) · 98 Stat. 333
Inserted · 11 U.S.C. § 523(a)(2)(B)
Pub. L. 98–353, § 307(a)(2), inserted “or” at end
Source evidence
Code amendment note
Subsec. (a)(2)(B). Pub. L. 98–353, § 307(a)(2), inserted “or” at end.
Enacted provision · exact public law section
(2) in subparagraph (B) by inserting “or” at the end thereof, and
1984
Pub. L. 98–353 § 454(a)(1)(A) · 98 Stat. 333
Struck · 11 U.S.C. § 523(a)(2)(B)(iii)
Pub. L. 98–353, § 454(a)(1)(A), struck out “obtaining” before “such”
Source evidence
Code amendment note
Subsec. (a)(2)(B)(iii). Pub. L. 98–353, § 454(a)(1)(A), struck out “obtaining” before “such”.
Enacted provision · exact public law section
(A) striking out “obtaining” each place it appears; and
1984
Pub. L. 98–353 § 307(a)(3) · 98 Stat. 333
Added · 11 U.S.C. § 523(a)(2)(C)
Pub. L. 98–353, § 307(a)(3), added subpar. (C)
Source evidence
Code amendment note
Subsec. (a)(2)(C). Pub. L. 98–353, § 307(a)(3), added subpar. (C).
Enacted provision · exact public law section
(3) by adding at the end thereof the following new subparagraph: “(C) for purposes of subparagraph (A) of this paragraph, consumer debts owed to a single creditor and aggregating more than $500 for ‘luxury goods or services’ incurred by an individual debtor on or within forty days before the order for relief under this title, or cash advances aggregating more than $1,000 that are extensions of consumer credit under an open end credit plan obtained by an individual debtor on or within twenty days before the order for relief under this title, are presumed to be nondischargeable; ‘luxury goods or services’ do not include goods or services reasonably acquired for the support or maintenance of the debtor or a dependent of the debtor; an extension of consumer credit under an open end credit plan is to be defined for purposes of this subparagraph as it is defined in the Consumer Credit Protection Act (15 U.S.C. 1601 et seq.);”.
1984
Pub. L. 98–353 § 454(b)(1) · 98 Stat. 333
Inserted · 11 U.S.C. § 523(a)(5)
Pub. L. 98–353, § 454(b)(1), inserted “or other order of a court of record” after “divorce decree,” in provisions preceding subpar. (A)
Source evidence
Code amendment note
Subsec. (a)(5). Pub. L. 98–353, § 454(b)(1), inserted “or other order of a court of record” after “divorce decree,” in provisions preceding subpar. (A).
Enacted provision · exact public law section
(1) amending the first paragraph thereof by inserting the words “or other order of a court of record” after the words “divorce decree,”; and
1984
Pub. L. 98–353 § 454(b)(2) · 98 Stat. 333
Inserted · 11 U.S.C. § 523(a)(5)(A)
Pub. L. 98–353, § 454(b)(2), inserted “, or any such debt which has been assigned to the Federal Government or to a State or any political subdivision of such State”
Source evidence
Code amendment note
Subsec. (a)(5)(A). Pub. L. 98–353, § 454(b)(2), inserted “, or any such debt which has been assigned to the Federal Government or to a State or any political subdivision of such State”.
Enacted provision · exact public law section
(2) inserting “, or any such debt which has been assigned to the Federal Government or to a State or any political subdivision of such State” after “Social Security Act”.
1984
Pub. L. 98–353 title III · 98 Stat. 333
1. Struck · 11 U.S.C. § 523(a)(8)
  Pub. L. 98–353, §§ 371(1), 454(a)(2), struck out “of higher education” after “a nonprofit institution of”
2. Struck · 11 U.S.C. § 523(a)(8)
  Pub. L. 98–353, §§ 371(1), 454(a)(2), struck out “or” at end
Source evidence
Code amendment note
Subsec. (a)(8). Pub. L. 98–353, §§ 371(1), 454(a)(2), struck out “of higher education” after “a nonprofit institution of” and struck out “or” at end.
Enacted provision · exact public law
TITLE III— AMENDMENTS TO TITLE 11 OF THE UNITED STATES CODE Subtitle A— Consumer Credit Amendments Sec. 301. Section 109 of title 11, United States Code, is amended by adding at the end thereof the following new subsection: “(f) Notwithstanding any other provision of this section, no individual may be a debtor under this title who has been a debtor in a case pending under this title at any time in the preceding 180 days if— “(1) the case was dismissed by the court for willful failure of the debtor to abide by orders of the court, or to appear before the court in proper prosecution of the case; or “(2) the debtor requested and obtained the voluntary dismissal of the case following the filing of a request for relief from the automatic stay provided by section 362 of this title.”. Sec. 302. Section 342 of title 11, United States Code, is amended— (1) by inserting “(a)” before “There shall be given”, and (2) by adding at the end thereof the following new subsection: “(b) Prior to the commencement of a case under this title by an individual whose debts are primarily consumer debts, the clerk shall give written notice to such individual that indicates each chapter of this title under which such individual may proceed.”. Sec. 303. Section 349(a) of title 11, United States Code, is amended by inserting before the period at the end thereof nor does the dismissal of a case under this title prejudice the debtor with regard to the filing of a subsequent petition under this title, except as Supra. provided in section 109(f) of this title”. Sec. 304. Section 362 of title 11, United States Code, is amended by adding at the end thereof the following new subsection: “(h) An individual injured by any willful violation of a stay provided by this section shall recover actual damages, including costs and attorneys’ fees, and, in appropriate circumstances, may recover punitive damages.”. Sec. 305. Section 521 of title 11, United States Code, is amended— (1) by redesignating paragraphs (2), (3), and (4) as paragraphs (3), (4), and (5), respectively, (2) in paragraph (1) by inserting “a schedule of current income and current expenditures,” after “liabilities,”, and (3) by inserting after paragraph (1) the following new paragraph: “(2) if an individual debtor’s schedule of assets and liabilities includes consumer debts which are secured by property of the estate— “(A) within thirty days after the date of the filing of a petition under chapter 7 of this title or on or before the date of the meeting of creditors, whichever is earlier, or within such additional time as the court, for cause, within such period fixes, the debtor shall file with the clerk a statement of his intention with respect to the retention or surrender of such property and, if applicable, specifying that such property is claimed as exempt, that the debtor intends to redeem such property, or that the debtor intends to reaffirm debts secured by such property; “(B) within forty-five days after the filing of a notice of intent under this section, or within such additional time as the court, for cause, within such forty-five day period fixes, the debtor shall perform his intention with respect to such property, as specified by subparagraph (A) of this paragraph; and “(C) nothing in subparagraphs (A) and (B) of this paragraph shall alter the debtor’s or the trustee’s rights with regard to such property under this title;”. Sec. 306. (a) Section 522(b) of title 11, United States Code, is amended by striking out “Notwithstanding” and all that follows through “either—” and inserting in lieu thereof the following: “Notwithstanding section 541 of this title, an individual debtor may exempt from property of the estate the property listed in either paragraph (1) or, in the alternative, paragraph (2) of this subsection. In joint cases filed under section 302 of this title and individual cases filed under section 301 or 303 of this title by or against debtors who are husband and wife, and whose estates are ordered to be jointly administered under Rule 1015(b) of the Bankruptcy Rules, one 11 USC app. debtor may not elect to exempt property listed in paragraph (1) and the other debtor elect to exempt property listed in paragraph (2) of this subsection. If the parties cannot agree on the alternative to be elected, they shall be deemed to elect paragraph (1), where such election is permitted under the law of the jurisdiction where the case is filed. Such property is—”. (b) Section 522(d)(3) of title 11, United States Code, is amended by inserting “or $4,000 in aggregate value” after “item”. (c) Section 522(d)(5) of title 11, United States Code, is amended to read as follows: “(5) The debtor’s aggregate interest in any property, not to exceed in value $400 plus up to $3,750 of any unused amount of the exemption provided under paragraph (1) of this subsection”. (d) Section 522(m) of title 11, United States Code, is amended to read as follows: “(m) Subject to the limitation in subsection (b), this section shall apply separately with respect to each debtor in a joint case.”. Sec. 307. (a) Section 523(a)(2) of title 11, United States Code, is amended— (1) in subparagraph (A) by striking out “or” at the end thereof, (2) in subparagraph (B) by inserting “or” at the end thereof, and (3) by adding at the end thereof the following new subparagraph: “(C) for purposes of subparagraph (A) of this paragraph, consumer debts owed to a single creditor and aggregating more than $500 for ‘luxury goods or services’ incurred by an individual debtor on or within forty days before the order for relief under this title, or cash advances aggregating more than $1,000 that are extensions of consumer credit under an open end credit plan obtained by an individual debtor on or within twenty days before the order for relief under this title, are presumed to be nondischargeable; ‘luxury goods or services’ do not include goods or services reasonably acquired for the support or maintenance of the debtor or a dependent of the debtor; an extension of consumer credit under an open end credit plan is to be defined for purposes of this subparagraph as it is defined in the Consumer Credit Protection Act (15 U.S.C. 1601 et seq.);”. (b) Section 523(d) of title 11, United States Code, is amended to read as follows: “(d) If a creditor requests a determination of dischargeability of a consumer debt under subsection (a)(2) of this section, and such debt is discharged, the court shall grant judgment in favor of the debtor for the costs of, and a reasonable attorney’s fee for, the proceeding if the court finds that the position of the creditor was not substantially justified, except that the court shall not award such costs and fees if special circumstances would make the award unjust.”. Sec. 308. (a) Section 524(a)(2) of title 11, United States Code, is amended by striking out “or from property of the debtor,”. (b) Section 524(c) of title 11, United States Code, is amended— (1) by striking out paragraph (2), (2) by redesignating paragraphs (3) and (4) as paragraphs (5) and (6), respectively, and (3) by inserting after paragraph (1) the following new paragraphs: “(2) such agreement contains a clear and conspicuous statement which advises the debtor that the agreement may be rescinded at any time prior to discharge or within sixty days after such agreement is filed with the court, whichever occurs later, by giving notice of rescission to the holder of such claim; “(3) such agreement has been filed with the court and, if applicable, accompanied by a declaration or an affidavit of the attorney that represented the debtor during the course of negotiating an agreement under this subsection, which states that such agreement— “(A) represents a fully informed and voluntary agreement by the debtor; and “(B) does not impose an undue hardship on the debtor or a dependent of the debtor; “(4) the debtor has not rescinded such agreement at any time prior to discharge or within sixty days after such agreement is filed with the court, whichever occurs later, by giving notice of recission to the holder of such claim;” and (4) by amending paragraph (6), as so redesignated, to read as follows: “(6) (A) in a case concerning an individual who was not represented by an attorney during the course of negotiating an agreement under this subsection, the court approves such agreement as— “(i) not imposing an undue hardship on the debtor or a dependent of the debtor; and “(ii) in the best interest of the debtor. “(B) Subparagraph (A) shall not apply to the extent that such debt is a consumer debt secured by real property.”. (c) Section 524(d)(2) of title 11, United States Code, is amended by striking out “subsection (c)(4)” and inserting in lieu thereof “subsection (c)(6)”. (e) Section 524 of title 11, United States Code, is amended by adding at the end thereof the following new subsection: “(f) Nothing contained in subsection (c) or (d) of this section prevents a debtor from voluntarily repaying any debt.”. Sec. 309. Section 525 of title 11, United States Code, is amended— (1) by inserting “(a)” before “Except”, (2) by inserting “the” before “Perishable”, and (3) by adding at the end thereof the following new subsection: Employment and unemployment. Discrimination, prohibition. 11 USC note prec. 101. “(b) No private employer may terminate the employment of, or discriminate with respect to employment against, an individual who is or has been a debtor under this title, a debtor or bankrupt under the Bankruptcy Act, or an individual associated with such debtor or bankrupt, solely because such debtor or bankrupt— “(1) is or has been a debtor under this title or a debtor or bankrupt under the Bankruptcy Act; “(2) has been insolvent before the commencement of a case under this title or during the case but before the grant or denial of a discharge; or “(3) has not paid a debt that is dischargeable in a case under this title or that was discharged under the Bankruptcy Act.”. Sec. 310. Section 547(c) of title 11, United States Code, is amended— (1) in paragraph (5) by striking out “or” at the end thereof, (2) in paragraph (6) by striking out the period at the end thereof and inserting in lieu thereof “; or”, and (3) by adding at the end thereof the following new paragraph: “(7) if, in a case filed by an individual debtor whose debts are primarily consumer debts, the aggregate value of all property that constitutes or is affected by such transfer is less than $600.”. Sec. 311. (a) Section 704 of title 11, United States Code, is amended— (1) by redesignating paragraphs (3), (4), (5), (6), (7), and (8) as paragraphs (4), (5), (6), (7), (8), and (9), respectively, and (2) by inserting after paragraph (2) the following new paragraph: “(3) ensure that the debtor shall perform his intention as specified in section 521(2)(B) of this title;”. Ante, p. 352. (b) (1) Section 1106(a)(1) of title 11, United States Code, is amended by striking out “704(4), 704(6), 704(7), and 704(8)” and inserting in lieu thereof “704(5), 704(7), 704(8), and 704(9)”. (2) Section 1304(c) of title 11, United States Code, is amended by striking out “section 704(7)” and inserting in lieu thereof “section 704(8)”. (3) Section 15103(f) of title 11, United States Code, is amended by striking out “704(8),” and inserting in lieu thereof “704(9),”. (4) Section 151301(b)(1) of title 11, United States Code, is amended 11 USC 151302. by striking out “and 704(8)” and inserting in lieu thereof “, 704(7), and 704(9)”. Sec. 312. Section 707 of title 11, United States Code, is amended— (1) by inserting “(a)” before “The court may” and (2) by adding at the end thereof the following new subsection: “(b) After notice and a hearing, the court, on its own motion and not at the request or suggestion of any party in interest, may dismiss a case filed by an individual debtor under this chapter whose debts are primarily consumer debts if it finds that the granting of relief would be a substantial abuse of the provisions of this chapter. There shall be a presumption in favor of granting the relief requested by the debtor.”. Sec. 313. Section 1301 of title 11, United States Code, is amended by adding at the end thereof the following new subsection: “(d) Twenty days after the filing of a request under subsection (c)(2) of this section for relief from the stay provided by subsection (a) of this section, such stay is terminated with respect to the party in interest making such request, unless the debtor or any individual that is liable on such debt with the debtor files and serves upon such party in interest a written objection to the taking of the proposed action.”. Sec. 314. Section 1302(b) of title 11, United States Code, is amended— (1) by amending paragraph (1) to read as follows: “(1) perform the duties specified in sections 704(2), 704(3), 704(4), 704(5), 704(6), 704(7), and 704(9) of this title;”; (2) in paragraph (2) by striking out “and” at the end thereof, (3) in paragraph (3) by striking out the period and inserting in lieu thereof “; and”, and (4) by adding at the end thereof the following new paragraph: “(4) ensure that the debtor commences making timely payments under section 1326 of this title.”. Sec. 315. Section 1307(c) of title 11, United States Code, is amended— (1) by redesignating paragraphs (4), (5), (6), and (7) as paragraphs (5), (6), (7), and (8), respectively, and (2) by inserting after paragraph (3) the following new paragraph: “(4) failure to commence making timely payments under section 1326 of this title;”. Sec. 316. Section 1322(b)(1) of title 11, United States Code, is amended to read as follows: “(1) designate a class or classes of unsecured claims, as provided in section 1122 of this title, but may not discriminate unfairly against any class so designated; however, such plan may treat claims for a consumer debt of the debtor if an individual is liable on such consumer debt with the debtor differently than other unsecured claims;”. Sec. 317. Section 1325 of title 11, United States Code, is amended— (1) in subsection (a) by striking out “The” and inserting in lieu thereof “Except as provided in subsection (b), the”, (2) by redesignating subsection (b) as subsection (c), and (3) by inserting after subsection (a) the following new subsection: “(b) (1) If the trustee or the holder of an allowed unsecured claim objects to the confirmation of the plan, then the court may not approve the plan unless, as of the effective date of the plan— “(A) the value of the property to be distributed under the plan on account of such claim is not less than the amount of such claim; or “(B) the plan provides that all of the debtor’s projected disposable income to be received in the three-year period beginning on the date that the first payment is due under the plan will be applied to make payments under the plan. “(2) For purposes of this subsection, disposable income’ means income which is received by the debtor and which is not reasonably necessary to be expended— “(A) for the maintenance or support of the debtor or a dependent of the debtor; or “(B) if the debtor is engaged in business, for the payment of expenditures necessary for the continuation, preservation, and operation of such business.”. Sec. 318. (a) Section 1326 of title 11, United States Code, is amended— (1) by redesignating subsections (a) and (b) as subsections (h) and (c), respectively, and (2) by inserting before such subsections the following new subsection: “(a) (1) Unless the court orders otherwise, the debtor shall commence making the payments proposed by a plan within 30 days after the plan is filed. “(2) A payment made under this subsection shall be retained by the trustee until confirmation or denial of confirmation of a plan. If a plan is confirmed, the trustee shall distribute any such payment in accordance with the plan. If a plan is not confirmed, the trustee shall return any such payments to the debtor, after deducting any unpaid claim allowed under section 503(b) of this title.”. (b) Section 15103(f) of title 11, United States Code, is amended by striking out “1326(a),” and inserting in lieu thereof “1326(b),”. Sec. 319. Section 1329(a) of title 11, United States Code, is amended by striking out “At” and all that follows through “modified to—”, and inserting in lieu thereof the following: “At any time after confirmation but before the completion of payments under a plan, the plan may be modified, upon request of the debtor, the trustee, or the holder of an allowed unsecured claim, to—”. Sec. 320. The Supreme Court shall prescribe general rules implementing Supreme Court of U.S. 28 USC 2075 note. Ante, p. 355. the practice and procedure to be followed under section 707(b) of title 11, United States Code. Section 2075 of title 28, United States Code, shall apply with respect to the general rules prescribed under this section. Sec. 321. Rule 2002 of the Bankruptcy Rules is amended by adding 11 USC app. at the end thereof the following new subdivision: “(n) In a voluntary case commenced under the Code by an individual debtor whose debts are primarily consumer debts, the clerk, or some other person as the court may direct, shall give the trustee and all creditors notice by mail of the order for relief not more than 20 days after the entry of such order.”. Sec. 322. Official Bankruptcy Form No. 1, referred to in Rule 1002 of the Bankruptcy Rules, is amended— 11 USC app. (1) by inserting after paragraph (5) the following: “(6) [If petitioner is an individual whose debts are primarily consumer debts.] Petitioner is aware that [he or she] may proceed under chapter 7 or 13 of title 11, United States Code, 11 USC 701 et seq.. 1301 et seq. understands the relief available under each such chapter, and chooses to proceed under chapter 7 of such title. “(7) [If petitioner is an individual whose debts are primarily consumer debts and such petitioner is represented by an attorney.] A declaration or an affidavit in the form of Exhibit ‘B’ is attached to and made a part of this petition.”, and (2) by inserting after Exhibit “A” at the end thereof the following new exhibit: “Exhibit ‘B’ “[If petitioner is an individual whose debts are primarily consumer debts, this Exhibit ‘B’ shall be completed and attached to the petition pursuant to paragraph (7) thereof.] Sec. 323. Section 408(c) of the Act of November 6, 1978 (Public Law 95–598; 92 Stat. 2687(c)), as amended by the Act of November 28, 1983 (Public Law 98–166; 97 Stat. 1071), is amended by striking out “September 30, 1984” and inserting in lieu thereof “September 30, 1986”. Sec. 324. Section 1103(b) of title 11, United States Code, is amended by striking out “A person” and inserting in lieu thereof “An attorney or accountant” Subtitle B— Amendments Relating to Grain Storage Facility Bankruptcy Sec. 350. Section 507(a) of title 11, United States Code, is amended— (1) by striking out “(5) Fifth” and inserting in lieu thereof “(6) Sixth” (2) by striking out “(6) Sixth” and inserting in lieu thereof “(7) Seventh”; and (3) by adding after paragraph (4) the following: “(5) Fifth, allowed unsecured claims of persons— “(A) engaged in the production or raising of grain, as Post, p. 359. defined in section 557(b)(1) of this title, against a debtor who owns or operates a grain storage facility, as defined in section 557(b)(2) of this title, for grain or the proceeds of grain, or “(B) engaged as a United States fisherman against a debtor who has acquired fish or fish produce from a fisherman through a safe or conversion, and who is engaged in operating a fish produce storage or processing facility— but only to the extent of $2,000 for each such individual.”. Sec. 351. Section 546 of title 11, United States Code, is amended— (1) in the first sentence of subsection (c) thereof, by striking out “The” and inserting in lieu thereof “Except as provided in subsection (d) of this section, the”; and (2) by redesignating subsection (d) as subsection (e); and (3) by inserting after subsection (c) the following: In the case of a seller who is a producer of grain sold to a grain storage facility, owned or operated by the debtor, in the ordinary course of such seller’s business (as such terms are defined Post, p. 359. in section 557 of this title) or in the case of a United States fisherman who has caught fish sold to a fish processing facility owned or operated by the debtor in the ordinary course of such fisherman’s business, the rights and powers of the trustee under sections 544(a), 545, 547, and 549 of this title are subject to any statutory or common law right of such producer or fisherman to reclaim such grain or fish if the debtor has received such grain or fish while insolvent, but— “(1) such producer or fisherman may not reclaim any grain or Claims. fish unless such producer or fisherman demands, in writing, reclamation of such grain or fish before ten days after receipt thereof by the debtor; and “(2) the court may deny reclamation to such a producer or fisherman with a right of reclamation that has made such a demand only if the court secures such claim by a lien.”. Sec. 352. (a) Chapter 5 of title 11, United States Code, is amended by adding at the end thereof the following new section: “§ 557. Expedited determination of interests in, and abandonment or other disposition of grain assets “(a) This section applies only in a case concerning a debtor that owns or operates a grain storage facility and only with respect to grain and the proceeds of grain. This section does not affect the application of any other section of this title to property other than grain and proceeds of grain. “(b) In this section— “(1) ‘grain’ means wheat, corn, flaxseed, grain sorghum, barley, oats, rye, soybeans, other dry edible beans, or rice; “(2) ‘grain storage facility’ means a site or physical structure regularly used to store grain for producers, or to store grain acquired from prodùcers for resale; and “(3) ‘producer’ means an entity which engages in the growing of grain. “(c) (1) Notwithstanding sections 362, 363, 365, and 554 of this title, on the court’s own motion the court may, and on the request of the trustee or an entity that claims an interest in grain or the proceeds of grain the court shall, expedite the procedures for the determination of interests in and the disposition of grain and the proceeds of grain, by shortening to the greatest extent feasible such time periods as are otherwise applicable for such procedures and by establishing, by order, a timetable having a duration of not to exceed 120 days for the completion of the applicable procedure specified in subsection (d) of this section. Such time periods and such timetable may be modified by the court, for cause, in accordance with subsection (f) of this section. “(2) The court shall determine the extent to which such time periods shall be shortened, based upon— “(A) any need of an entity claiming an interest in such grain or the proceeds of grain for a prompt determination of such interest; “(B) any need of such entity for a prompt disposition of such grain; “(C) the market for such grain; “(D) the conditions under which such grain is stored; “(E) the costs of continued storage or disposition of such grain; “(F) the orderly administration of the estate; “(G) the appropriate opportunity for an entity to assert an interest in such grain; and “(H) such other considerations as are relevant to the need to expedite such procedures in the case. “(d) The procedures that may be expedited under subsection (c) of this section include— “(1) the filing of and response to— “(A) a claim of ownership; “(B) a proof of claim; “(C) a request for abandonment; “(D) a request for relief from the stay of action against property under section 362(a) of this title; “(E) a request for determination of secured status; “(F) a request for determination of whether such grain or the proceeds of grain— “(i) is property of the estate; “(ii) must be turned over to the estate; or “(iii) may be used, sold, or leased; and “(G) any other request for determination of an interest in such grain or the proceeds of grain; “(2) the disposition of such grain or the proceeds of grain, before or after determination of interests in such grain or the proceeds of grain, by way of— “(A) sale of such grain; “(B) abandonment; “(C) distribution; or “(D) such other method as is equitable in the case; “(3) subject to sections 701, 702, 703, 1104, and 1302 of this title, the appointment of a trustee or examiner and the retention and compensation of any professional person required to assist with respect to matters relevant to the determination of interests in or disposition of such grain or the proceeds of grain; and “(4) the determination of any dispute concerning a matter specified in paragraph (1), (2), or (3) of this subsection. “(e) (1) Any governmental unit that has regulatory jurisdiction over the operation or liquidation of the debtor or the debtor’s business shall be given notice of any request made or order entered under subsection (c) of this section. “(2) Any such governmental unit may raise, and may appear and be heard on, any issue relating to grain or the proceeds of grain in a case in which a request is made, or an order is entered, under subsection (c) of this section. “(3) The trustee shall consult with such governmental unit before taking any action relating to the disposition of grain in the possession, custody, or control of the debtor or the estate. “(f) The court may extend the period for final disposition of grain or the proceeds of grain under this section beyond 120 days if the court finds that— “(1) the interests of justice so require in light of the complexity of the case; and “(2) the interests of those claimants entitled to distribution of grain or the proceeds of grain will not be materially injured by such additional delay. “(g) Unless an order establishing an expedited procedure under subsection (c) of this section, or determining any interest in or approving any disposition of grain or the proceeds of grain, is stayed pending appeal— “(1) the reversal or modification of such order on appeal does not affect the validity of any procedure, determination, or disposition that occurs before such reversal or modification, whether or not any entity knew of the pendency of the appeal; and “(2) neither the court nor the trustee may delay, due to the appeal of such order, any proceeding in the case in which such order is issued. “(h) (1) The trustee may recover from grain and the proceeds of grain the reasonable and necessary costs and expenses allowable under section 503(b) of this title attributable to preserving or disposing of grain or the proceeds of grain, but may not recover from such grain or the proceeds of grain any other costs or expenses. “(2) Notwithstanding section 326(a) of this title, the dollar amounts of money specified in such section include the value, as of the date of disposition, of any grain that the trustee distributes in kind. “(i) In all cases where the quantity of a specific type of grain held by a debtor operating a grain storage facility exceeds ten thousand bushels, such grain shall be sold by the trustee and the assets thereof distributed in accordance with the provisions of this section.”. (b) The table of sections of chapter 5 of title 11, United States Code, is amended by adding at the end thereof the following new item: ‘557 Expedited determination of interests in and disposition of grain.”. Sec. 353. Section 901(a) of title 11, United States Code, is amended by inserting “557,” after “553,”. Sec. 354. Rule 3001 of the Bankruptcy Rules is amended by adding 11 USC app. at the end thereof the following new subdivision “(g) To the extent not inconsistent with the United States Warehouse Act or applicable State law, a warehouse receipt, scale ticket, or similar document of the type routinely issued as evidence of title by a grain storage facility, as defined in section 557 of title 11, shall constitute prima facie evidence of the validity and amount of a claim of ownership of a quantity of grain ”. Subtitle C— Leasehold Management Amendments Sec. 361. This subtitle may be cited as the “Leasehold Management Bankruptcy Amendments Act of 1983”. Sec. 362. (a) Section 365 of title 11, United States Code, is amended by amending subsections (a), (b), (c), and (d) to read as follows: “(a) Except as provided in sections 765 and 766 of this title and in subsections (b), (c), and (d) of this section, the trustee, subject to the court’s approval, may assume or reject any executory contract or unexpired lease of the debtor. “(b) (1) If there has been a default in an executory contract or unexpired lease of the debtor, the trustee may not assume such contract or lease unless, at the time of assumption of such contract or lease, the trustee— “(A) cures, or provides adequate assurance that the trustee will promptly cure, such default; “(B) compensates, or provides adequate assurance that the trustee will promptly compensate, a party other than the debtor to such contract or lease, for any actual pecuniary loss to such party resulting from such default; and “(C) provides adequate assurance of future performance under such contract or lease. “(2) Paragraph (1) of this subsection does not apply to a default that is a breach of a provision relating to— “(A) the insolvency or financial condition of the debtor at any time before the closing of the case; “(B) the commencement of a case under this title; or “(C) the appointment of or taking possession by a trustee in a case under this title or a custodian before such commencement. “(3) For the purposes of paragraph (1) of this subsection and paragraph (2)(B) of subsection (t), adequate assurance of future performance of a lease of real property in a shopping center includes adequate assurance— “(A) of the source of rent and other consideration due under such lease, and in the case of an assignment, that the financial condition and operating performance of the proposed assignee and its guarantors, if any, shall be similar to the financial condition and operating performance of the debtor and its guarantors, if any, as of the time the debtor became the lessee under the lease; “(B) that any percentage rent due under such lease will not decline substantially; “(C) that assumption or assignment of such lease is subject to all the provisions thereof, including (but not limited to) provisions such as a radius, location, use, or exclusivity provision, and will not breach any such provision contained in any other lease, financing agreement, or master agreement relating to such shopping center; and “(D) that assumption or assignment of such lease will not disrupt any tenant mix or balance in such shopping center. “(4) Notwithstanding any other provision of this section, if there has been a default in an unexpired lease of the debtor, other than a default of a kind specified in paragraph (2) of this subsection, the trustee may not require a lessor to provide services or supplies incidental to such lease before assumption of such lease unless the lessor is compensated under the terms of such lease for any services and supplies provided under such lease before assumption of such lease. “(c) The trustee may not assume or assign any executory contract or unexpired lease of the debtor, whether or not such contract or lease prohibits or restricts assignment of rights or delegation of duties, if— “(1) (A) applicable law excuses a party, other than the debtor, to such contract or lease from accepting performance from or rendering performance to an entity other than the debtor or the debtor in possession or an assignee of such contract or lease, whether or not such contract or lease prohibits or restricts assignment of rights or delegation of duties; and “(B) such party does not consent to such assumption or assignment; or “(2) such contract is a contract to make a loan, or extend other debt financing or financial accommodations, to or for the benefit of the debtor, or to issue a security of the debtor; or “(3) such lease of nonresidential real property has been terminated under applicable nonbankruptcy law prior to the order for relief. “(d) (1) In a case under chapter 7 of this title, if the trustee does not assume or reject an executory contract or unexpired lease of residential real property or of personal property of the debtor within 60 days after the order for relief, or within such additional time as the court, for cause, within such 60-day period, fixes, then such contract or lease is deemed rejected. “(2) In a case under chapter 9, 11, or 13 of this title, the trustee 11 USC 901 et seq., 1101 et seq., 1301 et seq. may assume or reject an executory contract or unexpired lease of residential real property or of personal property of the debtor at any time before the confirmation of a plan but the court, on the request of any party to such contract or lease, may order the trustee to determine within a specified period of time whether to assume or reject such contract or lease. “(3) The trustee shall timely perform all the obligations of the debtor, except those specified in section 365(b)(2), arising from and Ante, p. 361. after the order for relief under any unexpired lease of nonresidential real property, until such lease is assumed or rejected, notwithstanding section 503(b)(1) of this title. The court may extend, for cause, the time for performance of any such obligation that arises within 60 days after the date of the order for relief, but the time for performance shall not be extended beyond such 60-day period. This subsection shall not be deemed to affect the trustee’s obligations under the provisions of subsection (b) or (f) of this section. Acceptance of any such performance does not constitute waiver or relinquishment of the lessor’s rights under such lease or under this title. “(4) Notwithstanding paragraphs (1) and (2), in a case under any chapter of this title, if the trustee does not assume or reject an unexpired lease of nonresidential real property under which the debtor is the lessee within 60 days after the date of the order for relief, or within such additional time as the court, for cause, within such 60-day period, fixes, then such lease is deemed rejected, and the trustee shall immediately surrender such nonresidential real property to the lessor.”. (b) Section 365 is further amended by adding at the end thereof the following new subsection: “(l) If an unexpired lease under which the debtor is the lessee is assigned pursuant to this section, the lessor of the property may require a deposit or other security for the performance of the debtor’s obligations under the lease substantially the same as would have been required by the landlord upon the initial leasing to a similar tenant. “(m) For purposes of this section 365 and sections 541(b)(2) and Real property. Infra. 362(b)(9), leases of real property shall include any rental agreement to use real property.”. Sec. 363. (a) Section 541(b) of title 11, United States Code, is amended to read as follows: “(b) Property of the estate does not include— “(1) any power that the debtor may exercise solely for the benefit of an entity other than the debtor; or “(2) any interest of the debtor as a lessee under a lease of nonresidential real property that has terminated at the expiration of the stated term of such lease before the commencement of the case under this title, and ceases to include any interest of the debtor as a lessee under a lease of nonresidential real property that has terminated at the expiration of the stated term of such lease during the case.”. (b) Section 362(b) of title 11 of the United States Code is amended by— (1) striking out “or” at the end of paragraph (7), (2) replacing the period after paragraph (8) with “; or”, and (3) adding the following after paragraph (8): “(9) under subsection (a) of this section, of any act by a lessor to the debtor under a lease of nonresidential real property that has terminated by the expiration of the stated term of the lease before the commencement of or during a case under this title to obtain possession of such property.”. Subtitle D— Amendments to Title 11, Section 523 Relating to the Discharge of Debts Incurred by Persons Driving While Intoxicated Sec. 371. Section 523(a) of title 11, United States Code, is amended by— (1) striking out “or” at the end of paragraph (8); and (2) by adding the following new paragraph after such paragraph: “(9) to any entity, to the extent that such debt arises from a judgment or consent decree entered in a court of record against the debtor wherein liability was incurred by such debtor as a result of the debtor’s operation of a motor vehicle while legally intoxicated under the laws or regulations of any jurisdiction within the United States or its territories wherein such motor vehicle was operated and within which such liability was incurred; or”. Subtitle E— Referees Salary and Expense Fund Sec. 381. This subtitle may be cited as the “Referees Salary and Expense Fund Act of 1984”. Sec. 382. Section 403(e) of the Act of November 6, 1978 (92 Stat. 2683; Public Law 95–598), is amended to read as follows: “(e) Notwithstanding subsection (a) of this section— “(1) a fee may not be charged under section 40c(2)(a) of the Bankruptcy Act in a case pending under such Act after September 30, 1979, to the extent that such fee exceeds $200,000; “(2) a fee may not be charged under section 40c(2)(b) of the Bankruptcy Act in a case in which the plan is confirmed after September 30, 1978, or in which the final determination as to the amount of such fee is made after September 30, 1979, notwithstanding an earlier confirmation date, to the extent that such fee exceeds $100,000; “(3) after September 30, 1979, all moneys collected for payment into the referees’ salary and expense fund in cases filed 11 USC note prec. 101. under the Bankruptcy Act shall be collected and paid into the general fund of the Treasury; and “(4) any balance in the referees’ salary and expense fund in the Treasury on October 1, 1979, shall be transferred to the general fund of the Treasury and the referees’ salary and expense fund account shall be closed.”. Subtitle F— Amendments Regarding Repurchase Agreements Sec. 391. Section 101 of title 11, United States Code, is amended— (1) by redesignating paragraphs (35), (36), (37), (38), (39), (40), and (41), as paragraphs (37), (38), (39), (40), (41), (42), and (43), respectively, and (2) by inserting after paragraph (34) the following new paragraphs: “(35) ‘repo participant’ means an entity that, on any day during the period beginning 90 days before the date of the filing of the petition, has an outstanding repurchase agreement with the debtor; “(36) ‘repurchase agreement’ (which definition also applies to Securities. a reverse repurchase agreement) means an agreement, including related terms, which provides for the transfer of certificates of deposit, eligible bankers’ acceptances, or securities that are direct obligations of, or that are fully guaranteed as to principal and interest by, the United States or any agency of the United States against the transfer of funds by the transferee of such certificates of deposit, eligible bankers’ acceptances, or securities with a simultaneous agreement by such transferee to transfer to the transferor thereof certificates of deposit, eligible bankers’ acceptances, or securities as described above, at a date certain not later than one year after such transfers or on demand, against the transfer of funds;”. Sec. 392. Section 362(b) of title 11, United States Code, is Ante, p. 363. amended— (a) by redesignating paragraphs (7) and (8) as paragraphs (8) and (9), respectively, and (b) by inserting after paragraph (6) the following new paragraph: “(7) under subsection (a) of this section, of the setoff by a repo participant, of any mutual debt and claim under or in connection with repurchase agreements that constitutes the setoff of a claim against the debtor for a margin payment, as defined in section 741(5) or 761(15) of this title, or settlement payment, as defined in section 741(8) of this title, arising out of repurchase agreements against cash, securities, or other property held by or due from such repo participant to margin, guarantee, secure or settle repurchase agreements;”. Sec. 393. Section 546 of title 11, United States Code, is amended by Ante, p. 358. inserting after subsection (e), as redesignated by section 251, the following: Notwithstanding sections 544, 545, 547, 548(a)(2), and 548(b) of this title, the trustee may not avoid a transfer that is a margin payment, as defined in section 741(5) or 761(15) of this title, or settlement payment, as defined in section 741(8) of this title, made by or to a repo participant, in connection with a repurchase agreement and that is made before the commencement of the case, except under section 548(a)(1) of this title.”. Sec. 394. Section 548(d)(2) of title 11, United States Code, is amended— (1) in subparagraph (A) by striking out “and” at the end thereof; (2) in subparagraph (B) by striking out the period at the end thereof and inserting in lieu thereof “; and”; and by inserting after paragraph (B) the following new subparagraph: “(C) a repo participant that receives a margin payment, as defined in section 741(5) or 761(15) of this title, or settlement payment, as defined in section 741(8) of this title, in connection with a repurchase agreement, takes for value to the extent of such payment.”. Sec. 395. Section 553(b)(1) of title 11, United States Code, is amended by inserting “, 362(b)(7),” after “362(b)(6)”. Sec. 396. (a) Chapter 5 of title 11, United States Code, is amended by adding at the end thereof the following new section: “§ 559. Contractual right to liquidate a repurchase agreement “The exercise of a contractual right of a repo participant to cause the liquidation of a repurchase agreement because of a condition of the kind specified in section 365(e)(1) of this title shall not be stayed, avoided, or otherwise limited by operation of any provision of this title or by order of a court or administrative agency in any proceeding under this title, unless, where the debtor is a stockbroker or securities clearing agency, such order is authorized under the provisions of the Securities Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.) or any statute administered by the Securities and Exchange Commission. In the event that a repo participant liquidates one or more repurchase agreements with a debtor and under the terms of one or more such agreements has agreed to deliver assets subject to repurchase agreements to the debtor, any excess of the market prices received on liquidation of such assets (or if any such assets are not disposed of on the date of liquidation of such repurchase agreements, at the prices available at the time of liquidation of such repurchase agreements from a generally recognized source or the most recent closing bid quotation from such a source) over the sum of the stated repurchase prices and all expenses in connection with the liquidation of such repurchase agreements shall be deemed property of the estate, subject to the available rights of setoff. As used in this section, the term ‘contractual right’ includes a right set forth in a rule or bylaw, applicable to each party to the repurchase agreement, of a national securities exchange, a national securities association, or a securities clearing agency, and a right, whether or not evidenced in writing, arising under common law, under law merchant or by reason of normal business practice.”. (b) The analysis of sections for chapter 5 of title 11, United States Code, is amended by adding at the end thereof the following new item: “559. Contractual right to liquidate a repurchase agreement.”. Subtitle G— Amendments to Title 11, Section 365 of the United States Code to Provide Adequate Protection for Timeshare Consumers Sec. 401. Title 11, United States Code, section 101 is hereby amended by— (1) redesignating paragraph (43), as redesignated by section Ante, p. 364. Real property. 391, as paragraph (44); and (2) adding the following paragraph after paragraph (42), as redesignated in section 391: “(43) ‘timeshare plan’ means and shall include that interest purchased in any arrangement, plan, scheme, or similar device, but not including exchange programs, whether by membership, agreement, tenancy in common, sale, lease, deed, rental agreement, license, right to use agreement, or by any other means, whereby a purchaser, in exchange for consideration, receives a right to use accommodations, facilities, or recreational sites, whether improved or unimproved, for a specific period of time less than a full year during any given year, but not necessarily for consecutive years, and which extends for a period of more than three years. A ‘timeshare interest’ is that interest purchased in a timeshare plan which grants the purchaser the right to use and occupy accommodations, facilities, or recreational sites, whether improved or unimproved, pursuant to a timeshare plan.”. Sec. 402. Section 365(h)(1) of title 11, United States Code, is Real property. amended to read as follows: “(h) (1) If the trustee rejects an unexpired lease of real property of the debtor under which the debtor is the lessor, or a timeshare interest under a timeshare plan under which the debtor is the timeshare interest seller, the lessee or timeshare interest purchaser under such lease or timeshare plan may treat such lease or time-share plan as terminated by such rejection, where the disaffirmance by the trustee amounts to such a breach as would entitle the lessee or timeshare interest purchaser to treat such lease as terminated by virtue of its own terms, applicable nonbankruptcy law, or other agreements the lessee or timeshare interest purchaser has made with other parties; or, in the alternative, the lessee or timeshare interest purchaser may remain in possession of the leasehold or timeshare interest under any lease or timeshare plan the term of which has commenced for the balance of such term and for any renewal or extension of such term that is enforceable by such lessee or timeshare interest purchaser under applicable nonbankruptcy law.”. Sec. 403. Section 365(h)(2) of title 11, United States Code, is Real property. amended to read as follows: “(2) If such lessee or timeshare interest purchaser remains in possession as provided in paragraph (1) of this subsection, such lessee or timeshare interest purchaser may offset against the rent reserved under such lease or moneys due for such timeshare interest for the balance of the term after the date of the rejection of such lease or timeshare interest, and any such renewal or extension thereof, any damages occurring after such date caused by the non-performance of any obligation of the debtor under such lease or timeshare plan after such date, but such lessee or timeshare interest purchaser does not have any rights against the estate on account of any damages arising after such date from such rejection, other than such offset.”. Sec. 404. Section 365(i)(1) of title 11, United States Code, is Real property. amended to read as follows: “(i) (1) If the trustee rejects an executory contract of the debtor for the sale of real property or for the sale of a timeshare interest under a timeshare plan, under which the purchaser is in possession, such purchaser may treat such contract as terminated, or, in the alternative, may remain in possession of such real property or timeshare interest.”. Subtitle H— Miscellaneous Amendments to Title 11 Sec. 421. (a) Section 101(2)(D) of title 11 of the United States Code is amended by striking out “or all” after “business”. (b) Section 101(8)(B) of title 11 of the United States Code is amended by striking out the colon at the end thereof and inserting in lieu thereof a semicolon. (c) Section 101(9)(B) of title 11 of the United States Code is amended by inserting “348(d),” after “section”. (d) Section 101(14) of title 11 of the United States Code is amended by inserting “and” after “trust,”. (e) Section 101(24) of title 11 of the United States Code is amended by striking out “stock broker” and inserting in lieu thereof “stockbroker” (f) Section 101(26)(B)(ii) of title 11 of the United States Code is amended by— (1) striking out “separate” each place it appears and inserting in lieu thereof “nonpartnership”; and (2) striking out “(A)(ii) and inserting in lieu thereof “(A)”, (g) Section 101(30) of title 11 of the United States Code is amended to read as follows: (30) “person” includes individual, partnership, and corporation, but does not include governmental unit, Provided, however, That any governmental unit that acquires an asset from a person as a result of operation of a loan guarantee agreement, or as receiver or liquidating agent of a person, will be considered a person for purposes of section 1102 of this title. (h) Section 101(38)(B)(vi) of title 11 of the United States Code, as Ante, p. 364. redesignated by section 391 of this Act, is amended by— (1) striking out “certificate specified in clause (xii) of subparagraph (A)” and inserting in lieu thereof “certificate of a kind specified in subparagraph (A)(xii)”; and (2) striking out “the subject of such a registration statement” and inserting in lieu thereof “required to be the subject of a registration statement”. (i) Section 101(44) of title 11 of the United States Code, as so redesignated, is amended by striking out the period and inserting in lieu thereof “and foreclosure of the debtor’s equity of redemption; and”. (j) Section 101 of title 11 of the United States Code is amended— (1) by redesignating paragraphs (41) through (44), as previously redesignated, as paragraphs (45) through (48); (2) by redesignating paragraphs (21) through (40) as paragraphs (24) through (43), respectively; (3) by redesignating paragraphs (19) and (20) as paragraphs (20) and (21), respectively; (4) by inserting after paragraph (18) the following: “(19) ‘financial institution’ means a person that is a commercial or savings bank, industrial savings bank, savings and loan association, or trust company and, when any such person is acting as agent or custodian for a customer in connection with a securities contract, as defined in section Post, p. 382. 741(7) of this title, such customer;”; (5) by inserting after paragraph (21) as redesignated herein the following: “(22) ‘forward contract’ means a contract (other than a commodity contract) for the purchase, sale, or transfer of a commodity, or product or byproduct thereof, with a maturity date more than two days after the date the contract is entered into; “(23) ‘forward contract merchant’ means a person whose business consists in whole or in part of entering into forward contracts as or with merchants in commodities;”; (6) by inserting after paragraph (43) the following: “(44) ‘State’ includes the District of Columbia and Puerto Rico, except for the purpose of defining who may be a debtor under chapter 9 of this title;”; and 11 USC 901 el seq. (7) by inserting after paragraph (48) the following: “(49) ‘United States’, when used in a geographical sense, includes all locations where the judicial jurisdiction of the United States extends, including territories and possessions of the United States;”. Sec. 422. Section 102 of title 11 of the United States Code is amended by striking out “continued” and inserting in lieu thereof “contained” in paragraph (8). Sec. 423. Section 103(c) of title 11 of the United States Code is amended by striking out “stockholder” and inserting in lieu thereof “stockbroker”. Sec. 424. (a) Subsections (a)(1), (b)(1), and (c)(1) of section 108 of title 11 of the United States Code are each amended by striking out “and” each place it appears and inserting in lieu thereof “or”. (b) Subsections (a), (b), and (c) of section 108 of title 11 of the United States Code are each amended by inserting “nonbankruptcy” after “applicable” and after “entered in a” each place such terms appear. Sec. 425. (a) Section 109 of title 11 of the United States Code, is amended by striking out “in the United States,” the first place it appears. (b) Section 109(c)(5)(D) of title 11 of the United States Code of this Act is amended by striking out “preference” and inserting in lieu thereof “transfer that is avoidable under section 547 of this title”. (c) Section 109(d) of title 11 of the United States Code is amended by striking out “stockholder” and inserting in lieu thereof “stock-broker”. Sec. 426. (a) Section 303(b) of title 11 of the United States Code is amended by inserting “against a person” after “involuntary case”. (b) Section 303 of title 11 of the United States Code, is amended— (1) in subsection (b)(1) by inserting “or the subject on a bona fide dispute,” after “liability”; and (2) in subsection (h)(1) by inserting “unless such debts that are the subject of a bona fide dispute” after “due”. Sec. 427. Section 303(j)(2) of title 11 of the United States Code is amended by striking out “debtors” and inserting in lieu thereof “debtor”. Sec. 428. Section 321(b) of title 11 of the United States Code is amended by striking out “a case” and inserting in lieu thereof “the case”. Sec. 429. Section 322(b)(1) of title 11 of the United States Code is amended by inserting “required to be” after “bond”. Sec. 430. (a) Section 326(a) of title 11 of the United States Code is amended by striking out all the language beginning with “three percent” through “$50,000” the second place the latter appears and inserting in lieu thereof “and three percent on any amount in excess of $3,000”. (b) Section 326(d) of title 11 of the United States Code is amended to read as follows: “(d) The court may deny allowance of compensation for services or reimbursement of expenses of the trustee if the trustee failed to make diligent inquiry into facts that would permit denial of allowance under section 328(c) of this title or, with knowledge of such facts, employed a professional person under section 327 of this title.”. (c) Section 327(c) of title 11 of the United States Code is amended to read as follows: “(c) In a case under chapter 7 or 11 of this title, a person is not disqualified for employment under this section solely because of such person’s employment by or representation of a creditor, unless there is objection by another creditor, in which case the court shall disapprove such employment if there is an actual conflict of interest.”. Sec. 431. Section 328(a) of title 11 of the United States Code is amended by striking out “unanticipatable” and inserting in lieu thereof “not capable of being anticipated”. Sec. 432. (a) Section 329(a) of title 11 of the United States Code is amended by striking out “and” the first place it appears and inserting in lieu thereof “or”. (b) Section 329(b)(1) of title 11 of the United States Code is amended by striking out “trustee” and inserting in lieu thereof “estate” Sec. 433. Section 330(a) of title 11 of the United States Code is amended— (1) by striking out “to any parties in interest and to the United States trustee”; and (2) in paragraph (1), by striking out “time, the nature, the extent, and the value of such services” and inserting in lieu thereof “nature, the extent, and the value of such services, the time spent on such services”. Sec. 434. (a) Section 330(b) of title 11 of the United States Code is amended by striking out “$20” and inserting in lieu thereof “$45”. (b) Section 330 of title 11 of the United States Code is amended by adding at the end thereof the following new subsection: “(c) Unless the court orders otherwise, in a case under chapter 13 11 USC 1301 et seq. of this title the compensation paid to the trustee serving in the case shall not be less than $5 per month from any distribution under the plan during the administration of the plan.”. Sec. 435. Section 342 of title 11 of the United States Code as Ante, p. 352. amended by section 302 is further amended by amending subsection (a) to read as follows: “(a) There shall be given such notice as is appropriate, including notice to any holder of a community claim, of an order for relief in a case under this title.”. Sec. 436. Section 343 of title 11 of the United States Code is amended by striking out “examiner” the last place it appears and inserting in lieu thereof “examine”. Sec. 437. Section 345 of title 11 of the United States Code is amended by adding at the end thereof a new subsection (c) as follows: “(c) An entity with which such moneys are deposited or invested is authorized to deposit or invest such moneys as may be required under this section”. Sec. 438. Section 346(c)(2) of title 11 of the United States Code is amended by striking out “operation” and inserting in lieu thereof “corporation”. Sec. 439. Section 350(b) of title 11 of the United States Code is amended by striking out “a” and inserting in lieu thereof “A”. Sec. 440. Section 361(1) of title 11 of the United States Code is amended by inserting “a cash payment or” after “make ”. Sec. 441. (a) Section 362(a) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “action or” after “other”; and (2) in paragraph (3), by inserting “or to exercise control over property of the estate” after “estate” the second place it appears. (b) Section 362(b) of title 11 of the United States Code is amended— (1) in paragraph (3), by inserting “or to the extent that such act is accomplished within the period provided under section 547(e)(2)(A) of this title” after “title”; (2) in paragraph (6), by— (A) inserting “or due from” after “held by”; and (B) striking out “or secure commodity contracts” and inserting in lieu thereof “secure, or settle commodity contracts”, and by inserting “financial institution,” after “stockbroker” each time it appears. (3) in paragraph (8) as redesignated by section 392, by— Ante, p. 365. (A) striking out “said” and inserting in lieu thereof “the”; and (B) striking out “or” the last place it appears; (4) in paragraph (9) as redesignated by section 392, by striking out the period and inserting in lieu thereof a semicolon; and (5) by adding after paragraph (9) the following new paragraph: “(10) under subsection (a) of this section, of the presentment of a negotiable instrument and the giving of notice of and protesting dishonor of such an instrument.”. (c) Section 362(c)(2)(B) of title 11 of the United States Code is amended by striking out “and” and inserting in lieu thereof “or”. (d) Section 362(d)(2) of title 11 of the United States Code is amended by inserting “under subsection (a) of this section” after “property” the first place it appears. (e) Section 362(e) of title 11 of the United States Code is amended— (1) in the first sentence by inserting “the conclusion of” after “pending”; and (2) by striking out the last sentence and inserting in lieu thereof the following: “The court shall order such stay continued in effect pending the conclusion of the final hearing under subsection (d) of this section if there is a reasonable likelihood that the party opposing relief from such stay will prevail at the conclusion of such final hearing. If the nearing under this subsection is a preliminary hearing, then such final hearing shall be commenced not later than thirty days after the conclusion of such preliminary hearing.”. (f) Section 362(f) of title 11 of the United States Code is amended by— (1) striking out “The” and inserting in lieu thereof “Upon request of a party in interest, the”; and (2) inserting “with or” after “court,”. Sec. 442. (a) Section 363(a) of title 11 of the United States Code is amended by— (1) inserting “whenever acquired” after “equivalents”; and (2) inserting “and includes the proceeds, products, offspring, rents, or profits of property subject to a security interest as provided in section 552(b) of this title, whether existing before or after the commencement of a case under this title” after “interest”. (b) Section 363(b) of title 11 of the United States Code is amended by— (1) striking out “(b)” and inserting in lieu thereof “(b)(1)”; and (2) adding at the end thereof the following new paragraph: “(2) If notification is required under subsection (a) of section 7 A of the Clayton Act (15 U.S.C. 18a) in the case of a transaction under this subsection, then— “(A) notwithstanding subsection (a) of such section, such notification shall be given by the trustee; and “(B) notwithstanding subsection (b) of such section, the required waiting period shall end on the tenth day after the date of the receipt of such notification, unless the court, after notice and hearing, orders otherwise.”. (c) Section 363(e) of title 11 of the United States Code is amended by— (1) inserting “, with or without a hearing,” after “court”; and (2) striking out the last sentence. (d) Section 363(f)(3) of title 11 of the United States Code is amended by striking out “such interest” the second place it appears and inserting in lieu thereof “all liens on such property”. (e) Section 363(h) of title 11 of the United States Code is amended by striking out “immediately before” and inserting in lieu thereof “at the time of”. (f) Section 363(i) of title 11 of the United States Code is amended by striking out “compenation” and inserting in lieu thereof “compensation”. (g) Section 363(k) of title 11 of the United States Code is amended by striking out “if the holder” and inserting in lieu thereof “unless the court for cause orders otherwise the holder of such claim may bid at such sale, and, if the holder”. (h) Section 363(1) of title 11 of the United States Code is amended by— (1) striking out “The trustee” and inserting in lieu thereof “Subject to the provisions of section 365, the trustee”; (2) striking out “conditions” and inserting in lieu thereof “condition”; (3) striking out “a taking” and inserting in lieu thereof “or the taking”; and (4) striking out “interests” and inserting in lieu thereof “interest”. (i) Section 363(n) of title 11 of the United States Code is amended by— (1) striking out “void” and inserting in lieu thereof “avoid”; (2) striking out “voiding” and inserting in lieu thereof “avoiding”; and (3) amending the last sentence to read as follows: “In addition to any recovery under the preceding sentence, the court may grant judgment for punitive damages in favor of the estate and against any such party that entered into such an agreement in willful disregard of this subsection.”. (j) Section 363 of title 11 of the United States Code is amended by adding at the end thereof the following new subsection: “(o) In any hearing under this section— “(1) the trustee has the burden of proof on the issue of adequate protection; and “(2) the entity asserting an interest in property has the burden of proof on the issue of the validity, priority, or extent of such interest.”. Sec. 443. Section 366(a) of title 11 of the United States Code is amended by inserting “of the commencement of a case under this title or” after “basis”. Sec. 444. Section 501(d) of title 11 of the United States Code is amended by inserting “502(e)(2),” before “502(f)”. Sec. 445. (a) Section 502(a) of title 11 of the United States Code is amended by inserting “general” before “partner”. (b) Section 502(b) of title 11 of the United States Code is amended— (1) by inserting “(e)(2),” after “subsections”; (2) by inserting “in lawful currency of the United States” after “claim” the second place it appears; (3) in paragraph (1), by striking out “, and unenforceable against” and inserting in lieu thereof “and”; (4) by striking out paragraph (3) and redesignating paragraphs (4), (5), (6), (7), (8), and (9) as paragraphs (3), (4), (5), (6), (7), and (8), respectively; (5) in paragraph (3), as redesignated by paragraph (5), by inserting “the” after “exceeds”; (6) in paragraph (5), as redesignated by paragraph (5), by— (A) striking out “the claim” and inserting in lieu thereof “such claim”, and (B) striking out the comma after “petition”; and (7) in paragraph (7), as redesignated by paragraph (5), by— (A) inserting “the claim of an employee” before “for damages”; (B) striking out “and” in subparagraph (A)(i) and inserting in lieu thereof “or”; (C) striking out “the” the first place it appears in subparagraph (B) and inserting in lieu thereof “any”; and (D) inserting a comma after “such contract” in subparagraph (B). (c) Section 502(c) of title 11 of the United States Code is amended— (1) in paragraph (1) by— (A) inserting “the” before “fixing”; and (B) striking out “closing” and inserting in lieu thereof “administration”; and (2) in paragraph (2), by— (A) inserting “right to payment arising from a” after “any”; and (B) striking out “if such breach gives rise to a right to payment”. (d) Section 502(e)(1) of title 11, United States Code, is amended— (1) by striking out “and (b)” and inserting in lieu thereof “, (b), and (c)”; and (2) by striking out the commas before and after “or has secured”; (3) in subparagraph (B), by inserting “or disallowance” after “allowance”; and (4) in subparagraph (C), by— (A) striking out “requests subrogation” and inserting in lieu thereof “asserts a right of subrogation to the rights of such creditor”; and (B) striking out “to the rights of such creditor”. (e) Section 502(h) of title 11 of the United States Code is amended by striking out “522(i)” and inserting in lieu thereof “522”. (f) Section 502(j) of title 11 of the United States Code is amended to read as follows: “(j) A claim that has been allowed or disallowed may be reconsidered for cause. A reconsidered claim may be allowed or disallowed according to the equities of the case. Reconsideration of a claim under this subsection does not affect the validity of any payment or transfer from the estate made to a holder of an allowed claim on account of such allowed claim that is not reconsidered, but if a reconsidered claim is allowed and is of the same class as such holder’s claim, such holder may not receive any additional payment or transfer from the estate on account of such holder’s allowed claim until the holder of such reconsidered and allowed claim receives payment on account of such claim proportionate in value to that already received by such other holder. This subsection does not alter or modify the trustee’s right to recover from a creditor any excess payment or transfer made to such creditor.”. Sec. 446. Section 503(b) of title 11 of the United States Code is amended— (1) by striking out the comma after “be allowed”; (2) in paragraph (1)(C), by striking out the comma after “credit”; (3) in paragraph (2), by inserting “(a)” after “330”; (4) in paragraph (3), by inserting a comma after “paragraph (4) of this subsection”; (5) in paragraph (3)(C), by striking out the comma after “case”; (6) in paragraph (5), by striking out “and” after the semicolon; and (7) in paragraph (6), by striking out the period and inserting in lieu thereof “; and”. Sec. 447. Section 505(a) of title 11 of the United States Code is amended in paragraph (2)(B)(i), by striking out “and” and inserting in lieu thereof “or”. Sec. 448. (a) Section 506(b) of title 11 of the United States Code is amended by inserting “for” after “provided”. (b) Paragraphs (1) and (2) of section 506(d) of title 11 of the United States Code are amended to read as follows: “(1) such claim was disallowed only under section 502(b)(5) or 502(e) of this title; or “(2) such claim is not an allowed secured claim due only to the failure of any entity to file a proof of such claim under section 501 of this title.”. Sec. 449. (a) Section 507(a) of title 11 of the United States Code is amended— (1) in paragraph (3), by inserting a comma after “severance”: (2) in paragraph (4), by striking out “employee benefit plans” and inserting in lieu thereof “an employee benefit plan”; (3) in paragraph (4)(B)(i), by inserting “each” after “covered by”; and (4) in paragraph (7) as redesignated by section 350 by inserting “only” after “units,”. (b) Section 507(c) of title 11 of the United States Code is amended by striking out “shall be treated the same” and inserting in lieu thereof “has the same priority”. Sec. 450. (a) Section 509(a) of title 11 of the United States Code is amended by— (1) striking out “subsections (b) and” and inserting in lieu thereof “subsection (b) or”; and (2) inserting “against the debtor” after “a creditor”. (b) Section 509(b)(1) of title 11 of the United States Code is amended by striking out “of a” and inserting in lieu thereof “of such”. (c) Section 509(c) of title 11 of the United States Code is amended by striking out “section 509 of this title” and inserting in lieu thereof “this section”. Sec. 451. Section 510(b) of title 11 of the United States Code is Claims. amended to read as follows: “(b) For the purpose of distribution under this title, a claim arising from rescission of a purchase or sale of a security of the debtor or of an affiliate of the debtor, for damages arising from the purchase or sale of such a security, or for reimbursement or contribution allowed under section 502 on account of such a claim, shall be subordinated to all claims or interests that are senior to or equal the claim or interest represented by such security, except that if such security is common stock, such claim has the same priority as common stock.”. Sec. 452. Section 521(3) of title 11 of the United States Code, as redesignated in section 305, is amended by inserting “, whether or Ante, p. 352. not immunity is granted under section 344 of this title” after “estate” the second place it appears. Sec. 453. (a) Section 522(a)(2) of title 11 of the United States Code is amended by inserting “or, with respect to property that becomes property of the estate after such date, as of the date such property becomes property of the estate” after “petition”. (b) Section 522(c) of title 11 of the United States Code is amended to read as follows: “(c) Unless the case is dismissed, property exempted under this section is not liable during or after the case for any debt of the debtor that arose, or that is determined under section 502 of this title as if such debt had arisen, before the commencement of the case, except— “(1) a debt of a kind specified in section 523(a)(1) or 523(a)(5) of this title; or “(2) a debt secured by a lien that is— “(A) (i) not avoided under subsection (f) or (g) of this section or under section 544, 545, 547, 548, 549, or 724(a) of this title; and “(ii) not void under section 506(d) of this title; or Ante, p. 374. “(B) a tax lien, notice of which is properly filed.”. (c) Section 522(e) of title 11 of the United States Code is amended by striking out “exemptions” and inserting in lieu thereof “an exemption”. Sec. 454. (a) Section 523(a) of title 11 of the United States Code is amended— (1) in paragraph (2), by— (A) striking out “obtaining” each place it appears; and (B) striking out “refinance of credit,” and inserting in lieu thereof “refinancing of credit, to the extent obtained”; and (2) by striking out “of higher education” in paragraph (8). (b) Section 523(a)(5) of title 11, United States Code, is amended by— (1) amending the first paragraph thereof by inserting the words “or other order of a court of record” after the words “divorce decree,”; and (2) inserting “, or any such debt which has been assigned to the Federal Government or to a State or any political subdivision of such State” after “Social Security Act”. (c) Section 523(c) of title 11 of the United States Code is amended by inserting “of a kind” after “debt” the first time it appears. Sec. 455. Section 524(a) of title 11 of the United States Code is amended by striking out “any act” each place it appears and inserting in lieu thereof “an act”. Sec. 456. (a) Section 541(a) of title 11 of the United States Code is amended— (1) by striking out “under” the second time it appears; (2) by inserting “and by whomever held” after “located”; (3) in paragraph (3), by inserting “329(b), 363(n),” after “section”; (4) in paragraph (5), by striking out “An” and inserting in lieu thereof “Any”; and (5) in paragraph (6), by striking out “and” and inserting in lieu thereof “or”. (b) Section 541(c) of title 11 of the United States Code is amended— (1) by inserting “in an agreement, transfer instrument, or applicable nonbankruptcy law” after “provision”; and (2) in paragraph (1)(B), by— (A) striking out “the taking” and inserting in lieu thereof “taking”; and (B) inserting “before such commencement” after “custodian”. (c) Section 541(d) of title 11 of the United States Code is amended by inserting “(1) or (2)” after “(a)”. (d) Section 541(e) of title 11 of the United States Code is repealed. Sec. 457. Section 542(e) of title 11 of the United States Code is amended by inserting “to turn over or” before “disclose”. Sec. 458. (a) Section 543(a) of title 11 of the United States Code is amended by inserting “, product, offspring, rents, or profits” after “proceeds”. (b) Section 543(b) of title 11 of the United States Code is amended— (1) in paragraph (1), by— (A) inserting “held by or” after “debtor”; and (B) inserting “, product, offspring, rents, or profits” after “proceeds”; and (2) in paragraph (2), by inserting “, product, offspring, rents, or profits” after “proceeds”. (c) Section 543(c) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “or proceeds, product, off-spring, rents, or profits of such property” after “property”; and (2) in paragraph (3), by inserting “that has been” before “approved”. (d) Section 543(d) of title 11 of the United States Code is amended to read as follows: “(d) After notice and hearing, the bankruptcy court— “(1) may excuse compliance with subsection (a), (b), or (c) of this section, if the interests of creditors and, if the debtor is not insolvent, of equity security holders would be better served by permitting a custodian to continue in possession, custody, or control of such property, and “(2) shall excuse compliance with subsections (a) and (b)(1) of this section if the custodian is an assignee for the benefit of the debtor’s creditors that was appointed or took possession more than 120 days before the date of the filing of the petition, unless compliance with such subsections is necessary to prevent fraud or injustice.”. Sec. 459. Section 544(a) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “such” after “obtained”; (2) in paragraph (2), by striking out “; and” and inserting in lieu thereof “, or”; and (3) in paragraph (3), by— (A) inserting “, other than fixtures,” after “property”; and (B) inserting “and has perfected such transfer” after “purchaser” the second place it appears. Sec. 460. Section 545 of title 11 of the United States Code is amended— (1) in paragraph (1)(A), by striking out “is” the first time it appears; (2) in paragraph (1)(C), by striking out “apponted” and inserting in lieu thereof appointed or authorized to take”; and (3) in paragraph (2), by striking out “on the date of of the filing the petition” each place it appears and inserting in lieu thereof “at the time of the commencement of the case”. Sec. 461. (a) Section 546(a) of title 11 of the United States Code is amended in paragraph (1) by striking out “and” and inserting in lieu thereof “or”. (b) Section 546(b) of title 11 of the United States Code is amended by striking out “the trustee under section 544, 545, or” and inserting in lieu thereof “a trustee under sections 544, 545, and”. (c) Section 546(c) of title 11 of the United States Code is amended— (1) by striking out “the trustee” and inserting in lieu thereof “a trustee”; (2) by striking out “right” the first place it appears; (3) by inserting “of goods that has sold goods to the debtor” after “seller” the first place it appears; (4) by striking out “of goods to the debtor” after “business,”; and (5) in paragraph (2), by— (A) inserting “the” after “if’; and (B) striking out “an administrative expense” and inserting in lieu thereof “a claim of a kind specified in section 503(b) of this title” (d) Section 546(e) of title 11 of the United States Code, as redesignated by section 351, is amended by inserting “financial institution” after “stockbroker”. Sec. 462. (a) Section 547(a) of title 11 of the United States Code is amended— (1) in paragraph (2), by inserting “including proceeds of such property,” after “law,”; and (2) in paragraph (4), by— (A) striking out “, without penalty”; and (B) inserting “without penalty” after “payable”. (b) Section 547(b) of title 11 of the United States Code is amended— (1) by striking out “of property of the debtor” and inserting in lieu thereof “of an interest of the debtor in property”; and (2) in paragraph (4) by amending subparagraph (B) to read as follows: “(B) between ninety days and one year before the date of the Tiling of the petition, if such creditor at the time of such transfer was an insider;”. (c) Section 547 of title 11 of the United States Code is amended in subsection (c)(2) thereof by striking out subparagraph (B) of such subsection, and by redesignating subparagraphs (C) and (D) thereof as subparagraphs (B) and (C), respectively. (d) Section 547(c) of title 11 of the United States Code is amended— (1) in paragraph (2)(A), by inserting “by the debtor” after “incurred”; (2) in paragraph (3), by striking out “of” the first place it appears and inserting in lieu thereof “that creates”; (3) in paragraph (3)(B), by— (A) inserting “on or after “perfected”; and (B) striking out “such security interest attaches” and inserting in lieu thereof “the debtor receives possession of such property”; (4) in paragraph (5), by— (A) striking out “of” the first place it appears and inserting in lieu thereof “that creates”; and (B) striking out “all security interest” and inserting in lieu thereof “all security interests”; and (5) in paragraph (5)(A)(ii), by striking out “and” and inserting in lieu thereof “or”. (e) Section 547(d) of title 11 of the United States Code is amended by— (1) striking out “A” and inserting in lieu thereof “The”; (2) inserting “an interest in” after “transfer of’: (3) inserting “to or for the benefit of a surety” after “transferred”; and (4) inserting “such” after “reimbursement of’. (f) Section 547(e) of title 11 of the United States Code is amended in paragraph (2)(C)(i), by striking out “and” and inserting in lieu thereof “or”. (g) Section 547 of title 11 of the United States Code is amended by adding at the end thereof the following new subsection: “(g) For the purposes of this section, the trustee has the burden of proving the avoidability of a transfer under subsection (b) of this section, and the creditor or party in interest against whom recovery or avoidance is sought has the burden of proving the nonavoidability of a transfer under subsection (c) of this section.”. Sec. 463. (a) Section 548(a) of title 11 of the United States Code is amended— (1) by striking out “if the debtor” and inserting in lieu thereof “if the debtor voluntarily or involuntarily”; (2) in paragraph (1), by striking out “occurred” and inserting in lieu thereof “was made”; and (3) in paragraph (2)(B)(ii), by inserting “or a transaction” after “engaged in business”. (b) Section 548(c) of title 11 of the United States Code is amended by— (1) inserting “or may retain” after “lien on”; and (2) striking out “, may retain any lien transferred,”. (c) (1) Section 548(d)(1) of title 11 of the United States Code is amended by— (A) striking out “becomes so far” and inserting in lieu thereof “is so”; (B) striking out “such transfer could have been” and inserting in lieu thereof “applicable law permits such transfer to be”; and (C) striking out “occurs” and inserting in lieu thereof “is made”. (2) Section 548(d)(2)(B) of title 11 is amended by inserting “financial institution,” after “stockbroker”. Sec. 464. (a) Section 549(a) of title 11 of the United States Code is amended— (1) by striking out “(b) and (c)” and inserting in lieu thereof “(b) or (c)”; and (2) in paragraph (2)(A), by inserting “only” after “authorized”. (3) striking out “that occurs” and inserting in lieu thereof “made”; (4) striking out “is valid against the trustee to the extent of’ and inserting in lieu thereof “to the extent”; and (5) inserting “is” before “given”. (c) Section 549(c) of title 11 of the United States Code is amended Real property. to read as follows: “(c) The trustee may not avoid under subsection (a) of this section a transfer of real property to a good faith purchaser without knowledge of the commencement of the case and for present fair equivalent value unless a copy or notice of the petition was filed, where a transfer of such real property may be recorded to perfect such transfer, before such transfer is so perfected that a bona fide purchaser of such property, against whom applicable law permits such transfer to be perfected, could not acquire an interest that is superior to the interest of such good faith purchaser. A good faith purchaser without knowledge of the commencement of the case and for less than present fair equivalent value has a lien on the property transferred to the extent of any present value given, unless a copy or notice of the petition was so filed before such transfer was so perfected”. (d) Section 549(d)(1) of title 11 of the United States Code is amended by striking out “and” and inserting in lieu thereof “or”. Sec. 465. (a) Section 550(a) of title 11 of the United States Code is amended by striking out “549, or 724(a) of this title” and inserting in lieu thereof “549, 553(b), or 724(a) of this title”. (b) Section 550(d) of title 11 of the United States Code is amended— (1) in paragraph (1)(A), by inserting “or accruing to” after “by”; (2) in paragraph (1)(B), by striking out “value” and inserting in lieu thereof “the value of such property”; (3) in paragraph (2), by striking out subparagraphs (D) and (E) and inserting in lieu thereof the following: “(D) payment of any debt secured by a lien on such property that is superior or equal to the rights of the trustee; and”, and (4) in paragraph (2), by redesignating subparagraph (F) as subparagraph (E). (c) Section 550(e)(1) of title 11 of the United States Code is amended by striking out “and” and inserting in lieu thereof “or”. Sec. 466. Section 552(b) of title 11 of the United States Code is amended by— (1) inserting “522,” after “506(c),”; (2) striking out “a secured party enter” and inserting in lieu thereof “an entity entered”; and (3) striking out “except to the extent” and inserting in lieu thereof “except to any extent”. Sec. 467. Section 553(b)(1) of title 11 of the United States Code is amended by striking out “or 365(h)(1)” and inserting in lieu thereof “, 365(h)(2), or 365(i)(2)”. Sec. 468. (a) Subsections (a) and (b) of section 554 of title 11 of the United States Code are each amended by inserting “and benefit” after “value”. (b) Section 554(c) of title 11 of the United States Code is amended to read as follows: “(c) Unless the court orders otherwise, any property scheduled under section 521(a)(1) of this title not otherwise administered at the time of the closing of a case is abandoned to the debtor and administered for purposes of section 350 of this title.”. (c) Section 554(d) of title 11 of the United States Code is amended by striking out “section (a) or (b) of”. Sec. 469. Section 555 of title 11 of the United States Code is amended by inserting “, financial institution,” after “stockbroker”. Sec. 470. (a) Chapter 5 of title 11 of the United States Code as amended by section 352 is amended by adding at the end thereof the following new section: “§ 558. Defenses of the estate “The estate shall have the benefit of any defense available to the debtor as against any entity other than the estate, including statutes of limitation, statutes of frauds, usury, and other personal defenses. A waiver of any such defense by the debtor after the commencement of the case does not bind the estate.”. (b) The table of sections for chapter 5 of title 11 of the United States Code is amended by adding at the end thereof the following new item: “558. Defenses of the estate.”. Sec. 471. The table of sections for chapter 7 of title 11 of the United States Code is amended by striking out “Succesor” in the item relating to section 703 and inserting in lieu thereof “Succcssor” Sec. 472. (a) Section 702(b) of title 11 of the United States Code is amended by inserting “held” after “meeting of creditors”. (b) Section 702(c) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “of a kind” after “claims”; and (2) in paragraph (2), by inserting “a” after “for”. (c) Section 702(d) of title 11 of the United States Code is amended by striking out “subsection (c) of”. Sec. 473. Section 703(b) of title 11 of the United States Code is amended by striking out “specified in section 701(a) of this title. Sections 701(b) and 701(c) of this title apply to such interim trustee” and inserting in lieu thereof “and subject to the provisions of section 701 of this title”. Sec. 474. Section 704 of title 11 of the United States Code as amended by section 311 is amended in paragraph (1), by striking out Ante, p. 355. “up”. Sec. 475. Paragraphs (1) and (2) of section 707 of title 11 of the United States Code are each amended by striking out “and” and inserting in lieu thereof “or”. Sec. 476. (a) Section 723(a) of title 11 of the United States Code is amended by striking out all after “claims” and inserting in lie thereof “which are allowed in a case under this chapter concerning a partnership and with respect to which a general partner of the partnership is personally liable, the trustee shall have a claim against such general partner for the full amount of the deficiency”. (b) Section 723(c) of title 11 of the United States Code is amended by— (1) striking out “such case” each place it appears and inserting in lieu thereof “such partner’s case”; (2) striking out “be property” and inserting in lieu thereof “by property”; and (3) striking out “the kind” and inserting in lieu thereof “a kind”. Sec. 477. (a) Section 724(b) of title 11 of the United States Code is amended— (1) by striking out “taxes” and inserting in lieu thereof “a tax”; (2) in paragraph (2), by— (A) striking out “claims” and inserting in lieu thereof “any holder of a claim of a kind”; (B) striking out “sections” and inserting in lieu thereof “section”; and (C) striking out “and” and inserting in lieu thereof “or”; and (3) in paragraph (3), by inserting “tax” after “allowed”. (b) Section 724(c) of title 11 of the United States Code is amended by— (1) striking out “creditor” and inserting in lieu thereof “holder of a claim”; and (2) striking out “creditors” each place it appears and inserting in lieu thereof “holders”. (c) Section 724(d) of title 11 of the United States Code is amended by— (1) striking out “whose priority” and inserting in lieu thereof “the priority of which”; and (2) inserting ‘ if such lien were” after “the same as”. Sec. 478. Section 725 of title 11 of the United States Cede is amended by inserting “of property of the estate” after “distribution”. Sec. 479. (a) Section 726(b) of title 11 of the United States Code is amended by— (1) striking out “a particular paragraph” and inserting in lieu thereof “each such particular paragraph”; and (2) striking out “administrative expenses” each place it appears and inserting in lieu thereof “a claim allowed under section 503(b) of this title”; and (3) striking out “have” and inserting in lieu thereof “has”. (b) Section 726(c) of title 11 of the United States Code is amended— (1) in paragraph (1), by striking out “Administrative expenses” and inserting in lieu thereof “Claims allowed under section 503 of this title”; and (2) in paragraph (2), by striking out “Claims other than for administrative expenses” and inserting in lieu thereof “Allowed claims, other than claims allowed under section 503 of this title,”. Sec. 480. (a) Section 727(a) of title 11 of the United States Code is amended— (1) in paragraph (6)(C), by striking out “property” and inserting in lieu thereof “properly”; (2) in paragraph (7), by inserting “, under this title or under the Bankruptcy Act,” after “another case”; and (3) in paragraph (8), by inserting a comma after “371”. (b) Section 727(c)(1) of title 11 of the United States Code is amended by inserting “the granting of a” after “to”. (c) Section 727(e)(2)(A) of title 11 of the United States Code is amended by striking out “and” and inserting in lieu thereof “or”. Sec. 481. (a) Section 728(c) of title 11 of the United States Code is amended by striking out the comma after “taxable income”. (b) Section 728(d)(2) of title 11 of the United States Code is amended by inserting “otherwise” after “is”, and by striking out “otherwise” after “partner”. Sec. 482. Section 741 of title 11 of the United States Code is amended— (1) in paragraph (2)(A), by— (A) striking out “the debtor” the first time it appears and inserting in lieu thereof “a person”; (B) striking out “holds” and inserting in lieu thereof “has”; (C) striking out “the debtor” the second and third time it appears and inserting in lieu thereof “such person”; and (D) striking out “business as a stockbroker” and inserting in lieu thereof “such person”s business as a stockbroker,”, (2) in paragraph (2)(B), by— (A) striking out “holds” and inserting in lieu thereof “has”; (B) striking out “the debtor” the first place it appears and inserting in lieu thereof “a person”; and (C) by striking out “the debtor” and inserting in lieu thereof “such person” in clause (ii); (3) in paragraph (4)(A)(i), by striking out “and that is” and inserting in lieu thereof “from and that is the lawful”; (4) in paragraph (6)(A)(i), by— (A) inserting a comma after “petition”; and (B) inserting “any” after “except”; and (5) in paragraph (7), by amending such paragraph to read as follows: “(7) ‘securities contract’ means contract for the purchase, sale, or loan of a security, including an option for the purchase or sale of a security, certificate of deposit, or group or index of securities (including any interest therein or based on the value thereof), or any option entered into on a national securities exchange relating to foreign currencies, or the guarantee of any settlement of cash or securities by or to a securities clearing agency;”; and (6) in paragraph (8) by inserting “a final settlement payment,” after “settlement payment on account,”. Sec. 483. Section 745(a) of title 11 of the United States Code is amended by inserting “the debtor for” after “by”. Sec. 484. (a) Section 752(a) of title 11 of the United States Code is amended by— (1) striking out “customers allowed” and in lieu thereof “customers’ allowed”; (2) inserting “of the kind” after “except claims”; and (3) inserting “such” before “customer property”. (b) Section 752(b)(2) of title 11 of the United States Code is amended by striking out “726(a)” and inserting in lieu thereof “726”. Sec. 485. Section 761 of title 11 of the United States Code is amended in paragraph (10), by striking out “and that is” in subparagraph (A)(viii) and inserting in lieu thereof “from and that is the lawful”. Sec. 486. Section 763(a) of title 11 of the United States Code is amended by— (1) inserting “the debtor for” after “by”; and (2) striking out “deemed to be” and inserting in lieu thereof “treated as”. Sec. 487. Section 764(a) of title 11 of the United States Code is amended by inserting “by the debtor” after “any transfer”. Sec. 488. Section 765(a) of title 11 of the United States Code is amended by striking out “notice under”, and inserting in lieu thereof “notice required by”. Sec. 489. Section 766(j)(2) of title 11 of the United States Code is amended by striking out “726(a)” and inserting in lieu thereof “726”. Sec. 490. Section 901(a) of title 11 of the United States Code is amended by inserting a comma after “1111(b)”. Sec. 491. Section 902(2) of title 11 of the United States Code is amended by striking out “title, legal or equitable, to real property against which has been levied a special assessment or special tax” and by inserting in lieu thereof “legal or equitable title to real property against which a special assessment or special tax has been levied”. Sec. 492. Section 903(2) of title 11 of the United States Code is amended by striking out “to” the first place it appears. Sec. 493. Chapter 9 of title 11 of the United States Code is 11 USC prec 921.. amended by striking out “SUBCHAPER II” and inserting in lieu thereof “SUBCHAPTER II”. Sec. 494. (a) Section 921(c) of title 11 of the United States Code is amended by— (1) striking out “an” and inserting in lieu thereof “any”; and (2) striking out the comma after “petition” the second place it appears, and after “faith”. (b) Section 921 of title 11 of the United States Code is amended by redesignating subsections (e) and (f) as subsections (d) and (e), respectively. (c) Section 921(a) is amended by striking out “109(c)” and inserting in lieu thereof “109(d)”. (d) Section 921(d) of title 11 of the United States Code, as so redesignated, is amended by striking out “subsection (d)” and inserting in lieu thereof “subsection (c)”. Sec. 495. Section 922(a)(1) of title 11 of the United States Code is amended by— (1) inserting “a” before “judicial”; and (2) inserting “action or” before “proceeding”. Sec. 496. Section 927(b) of title 11 of the United States Code is amended by inserting “of a plan under this chapter” after “confirmation”. Sec. 497. Section 943(b) of title 11 of the United States Code is amended— (1) in paragraph (4), by striking out “to be taken”; and (2) by amending paragraph (5) to read as follows: “(5) except to the extent that the holder of a particular claim has agreed to a different treatment of such claim, the plan provides that on the effective date of the plan each holder of a claim of a kind specified in section 507(a)(1) of this title will receive on account of such claim cash equal to the allowed amount of such claim; and”. Sec. 498. Section 945(a) of title 11 of the United States Code is amended by striking out “execution” and inserting in lieu thereof “implementation”. Sec. 499. Section 1102(b)(1) of title 11 of the United States Code is amended by striking out “order for relief’ and inserting in lieu thereof “commencement of the case”. Sec. 500. (a) Section 1103(b) is amended by— (1) inserting “having an adverse interest” after “entity”; and (2) adding at the end thereof the following: “Representation of one or more creditors of the same class as represented by the committee shall not per se constitute the representation of an adverse interest/’. (b) Section 1103(c) of title 11 of the United States Code is amended— (1) in paragraph (3), by— (A) striking out “recommendations” and inserting in lieu thereof “determinations”; and (B) inserting “or rejections” after “acceptances”; and (2) in paragraph (4), by striking out “, if a trustee or examiner, as the case may be, has not previously been appointed under this chapter in the case”. Sec. 501. Section 1105 of title 11 of the United States Code is amended by striking out “estate, and” and inserting in lieu thereof “estate and of the”. Sec. 502. Section 1106(b) of title 11 of the United States Code is amended by inserting “, except to the extent that the court orders otherwise, before “any other”. Sec. 503. Section 1107(a) of title 11 of the United States Code is amended by inserting “serving in a case” after “on a trustee”. Sec. 504. Section 1108 of title 11 of the United States Code is amended by inserting “, on request of a party in interest and after notice and a hearing, after “court”. Sec. 505. (a) Section 1112(a) of title 11 of the United States Code is amended— (1) in paragraph (2), by striking out “is an involuntary case originally commenced under this chapter” and inserting in lieu thereof “originally was commenced as an involuntary case under this chapter”; and (2) in paragraph (3), by striking but “on other than” and inserting in lieu thereof “other than on”. (b) Section 1112(b) of title 11 of the United States Code is amended— (1) in paragraph (5), by inserting “a request made for” before “additional”; and (2) in paragraph (8), by striking out “and” and inserting in lieu thereof “or”. Sec. 506. (a) Section 1121(c)(3) of title 11 of the United States Code is amended by striking out “the claims or interests of which are” and inserting in lieu thereof “of claims or interests that is”. (b) Section 1121(d) of title 11 of the United States Code is amended by inserting “made within the respective periods specified in subsection (c) of this section” after “interest”. Sec. 507. (a) Section 1123(a) of title 11 of the United States Code is amended— (1) by striking out “A” and inserting in lieu thereof “Notwithstanding any otherwise applicable nonbankruptcy law, a”; (2) in paragraph (1), by— (A) inserting a comma after “classes of claims”; and (B) by striking out “507(a)(6) of this title” and inserting in lieu thereof “507(a)(7) of this title,”; (3) in paragraph (3), by striking out “shall”; (4) in paragraph (5), by striking out “execution” and inserting in lieu thereof “implementation”, and (5) in paragraph (5)(G), by inserting “of’ after “waiving”. (b) Section 1123(b)(2) of title 11 of the United States Code is amended by— (1) striking out “or rejection” and inserting in lieu thereof “, rejection, or assignment”; and (2) striking out “under section 365 of this title” and inserting in lieu thereof “under such section”. Sec. 508. Section 1124 of title 11 of the United States Code is amended— (1) by amending paragraph ()(A) to read as follows: “(A) cures any such default that occurred before or after the commencement of the case under this title, other than a default of a kind specified in section 365(b)(2) of this title;”; Ante, p. 361. and (2) in paragraph (3)(B)(i), by striking out “and” and inserting in lieu thereof “or”. Sec. 509. (a) Section 1125(a) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “, but adequate information need not include such information about any other possible or proposed plan” after “plan”; (2) in paragraph (2)(B), by inserting “the” after “with”; and (3) in paragraph (2)(C), by inserting “or’ after “holders”. (b) Section 1125(d) of title 11 of the United States Code is amended by— (1) inserting “required under subsection (b) of this section” after “statement” the first place it appears; and (2) inserting or otherwise seek review of,” after “appeal from”. (c) Section 1125(e) of title 11 of the United States Code is amended by— (1) inserting “acceptance or rejection of a plan” after “solicits”; and (2) inserting “solicitation of acceptance or rejection of a plan or” after “governing”. Sec. 510. (a) Section 1126(b)(2) of title 11 of the United States Code is amended by striking out “1125(a)(1)” and inserting in lieu thereof “1125(a)”. (b) Section 1126(d) of title 11 of the United States Code is amended by inserting a comma after “such interests” the first place it appears. (c) Section 1126(f) of title 11 of the United States Code is amended by— (1) striking out “is deemed” and inserting in lieu thereof “, and each holder of a claim or interest of such class, are conclusively presumed”; (2) striking out “solicititation” and inserting in lieu thereof “solicitation”; and (3) striking out “interest” and inserting in lieu thereof “interests” (d) Section 1126(g) of title 11 of the United States Code is amended by striking out “any payment or compensation” and inserting in lieu thereof “receive or retain any property”. Sec. 511. (a) Section 1127(a) of title 11 of the United States Code is amended by— (1) inserting “of a plan” after “After the proponent”; and (2) inserting “of such plan” after “modification”. (b) Section 1127(b) of title 11 of the United States Code is amended by striking out “the court, after notice and a hearing, confirms such plan, as modified, under section 1129 of this title, and circumstances warrant such modification” and inserting in lieu thereof “circumstances warrant such modification and the court, after notice and a hearing, confirms such plan as modified, under section 1129 of this title”. Sec. 512. (a) Section 1129(a) of title 11 of the United States Code is amended— (1) in paragraph (1), by striking out “chapter.” and inserting in lieu thereof “title.”; (2) in paragraph (2), by striking out “chapter.” and inserting in lieu thereof “title.”; (3) by amending paragraph (4) to read as follows: “(4) Any payment made or to be made by the proponent, by the debtor, or by a person issuing securities or acquiring property under the plan, for services or for costs and expenses in or in connection with the case, or in connection with the plan and incident to the case, has been approved by, or is subject to the approval of, the court as reasonable;”; (4) in paragraph (5)(A)(ii), by striking out the period and inserting in lieu thereof “; and”; (5) in paragraph (5)(B), by striking out “The” and inserting in lieu thereof “the”; (6) in paragraph (6), by inserting “governmental” after “Any”; (7) in paragraph (7), by— (A) inserting “of each impaired class of claims or interests” in lieu of “each class”; and (B) striking out “creditor’s” in subparagraph (B) and inserting in lieu thereof “holder’s”; (8) in paragraph (8), by inserting “of claims or interests” after “each class”; and (9) by amending paragraph (10) to read as follows: “(10) If a class of claims is impaired under the plan, at least one class of claims that is impaired under the plan has accepted the plan, determined without including any acceptance of the plan by any insider.”. (b) Section 1129(b) of title 11 of the United States Code is amended— (1) in paragraph (2)(A), by striking out “lien” each place it appears and inserting in lieu thereof “liens”; (2) in paragraph (2)(B)(ii), by inserting “under the plan” after “retain”, and (3) in paragraph (2)(C)(i), by— (A) striking out “claim” and inserting in lieu thereof “interest”; and (B) striking out “and the value” and inserting in lieu thereof “or the value”. (c) Section 1129(d) of title 11 of the United States Code is amended by— (1) inserting “the application of” after “avoidance of” the second place it appears; and (2) adding at the end thereof the following new sentence: “In any hearing under this subsection, the governmental unit has the burden of proof on the issue of avoidance.”. Sec. 513. (a) Section 1141(a) of title 11 of the United States Code is amended by striking out “any creditor or equity security holder of, or general partner in,” and inserting in lieu thereof “any creditor, equity security holder, or general partner in”. (b) Section 1141(c) of title 11 of the United States Code is amended to read as follows: “(c) Except as provided in subsections (d)(2) and (d)(3) of this section and except as otherwise provided in the plan or in the order confirming the plan, after confirmation of a plan, the property dealt with by the plan is free and clear of all claims and interests of creditors, equity security holders, and of general partners in the debtor.”. Sec. 514. (a) The heading for section 1142 of title 11 of the United States Code is amended to read as follows: “§ 1142. Implementation of plan”. (b) The item relating to section 1142 in the table of sections for chapter 11 of title 11 of the United States Code is amended by striking out “Execution” and inserting in lieu thereof “Implementation”. (c) Section 1142(a) of title 11 of the United States Code is amended by striking out the comma after “plan” the second place it appears. (d) Section 1142(b) of title 11 of the United States Code is amended by inserting “a” after “by”. Sec. 515. Section 1144 of title 11 of the United States Code is amended by inserting “if and only” after “revoke such order”. Sec. 516. (a) Section 1145(a) of title 11 of the United States Code is amended— (1) in paragraph (3)(B)(i), by inserting “or 15(d)” after “13” and by inserting “or 78o(d)” after “78m”; (2) by amending paragraph (3)(B)(ii) to read as follows: “(ii) in compliance with the disclosure and reporting provision of such applicable section; and”; and (3) in paragraph (4), by striking out “stockholder” each place it appears and inserting in lieu thereof “stockbroker”. (b) Section 1145(b) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “and except with respect to ordinary trading transactions of an entity that is not an issuer” after “subsection”; (2) in paragraph (1)(C), by striking out “for” and inserting in lieu thereof “from”; (3) in paragraph (2)(a)(1), by striking out “combination” and inserting in lieu thereof “or combining”; and (4) in paragraph (2)(A)(ii), by striking out “among” and inserting in lieu thereof “from or to”. (c) Section 1145(d) of title 11 of the United States Code is amended by striking out “commercial”. Sec. 517. (a) Section 1146(c) of title 11 of the United States Code is amended by striking out “State or local”. (b) Section 1146(d)(1) of title 11 of the United States Code is amended by striking out “and” and inserting in lieu thereof “or”. Sec. 518. Section 1166 of title 11 of the United States Code is amended by striking out “the Interstate Commerce Act (49 U.S.C. 1 et seq.)” and inserting in lieu thereof “subtitle IV of title 49”. Sec. 519. Section 1168(b) of title 11 of the United States Code is amended by inserting a comma after “approval”. Sec. 520. Section 1169(c) of title 11 of the United States Code is amended by striking out “the Interstate Commerce Act (49 U.S.C. 1 et seq.)” and inserting in lieu thereof “subtitle IV of title 49”. Sec. 521. (a) Section 1170(a) of title 11 of the United States Code is amended by inserting “of all or a portion” after “the abandonment”. (b) Section 1170(c) of title 11 of the United States Code is amended by inserting a comma after “abandonment”. (c) Section U70(d)(2) of title 11 of the United States Code is amended by— (1) striking out “the abandonment of a railroad line” and inserting in lieu thereof “such abandonment”; and (2) striking out “termination” each place it appears and inserting in lieu thereof “suspension”. Sec. 522. Section 1171(b) of title 11 of the United States Code is amended by striking out “such” and inserting in lieu thereof “the same”. Sec. 523. Section 1173(a)(4) of title 11 of the United States Code is amended by striking out “compatible” and inserting in lieu thereof “consistent”. Sec. 524. Section 1301(c)(3) of title 11 of the United States Code is amended by inserting “continuation of’ after “by”. Sec. 525. (a) Section 1302(b) of title 11 of the United States Code as Ante, p. 356. amended by section 314 is amended by redesignating paragraphs (3) and (4) as paragraphs (4) and (5), respectively and by inserting after paragraph (2) the following new paragraph: “(3) dispose of, under regulations issued by the Director of the Administrative Office of the United States Courts, moneys received or to be received in a case under chapter XIII of the Bankruptcy Act; and”. (b) Section 1302(e) of title 11 of the United States Code is amended— (1) in paragraph (4), by striking out “fix” and inserting in lieu thereof “set for such individual”; (2) in paragraph (1)(A), by striking out “for such individual”; and (3) in paragraph (2)(A), by— (A) striking out “of” and inserting in lieu thereof “received by”; and (B) striking out “upon all payments” and inserting in lieu thereof “of all such payments made”. Sec. 526. Section 1304(b) of title 11 of the United States Code is amended by striking out the comma after “of the debtor”. Sec. 527. (a) Section 1307(b) of title 11 of the United States Code is amended by inserting a comma after “time”. (b) Section 1307(c) of title 11 of the United States Code as amended by section 315 is amended— Ante, p. 356. (1) in paragraph (5), as redesignated by inserting “a request made for” before “additional”; (2) in paragraph (7), as redesignated by striking out “and” after the semicolon and inserting in lieu thereof “or”; and (3) in paragraph (8), as redesignated by inserting “other than completion of payments under the plan” after ‘In the plan”. Sec. 528. (a) Section 1322(a)(2) of title 11 of the United States Code is amended by inserting a comma after “payments”. (b) Section 1322(b) of title 11 of the United States Code is amended— (1) in paragraph (2), by inserting “, or leave unaffected the rights of holders of any class of claims” before the semicolon; (2) in paragraph (4), by inserting “other” after “claim or any”; (3) in paragraph (7), by— (A) inserting “subject to section 365 of this title,” before “provide”; (B) striking out “or rejection” and inserting in lieu thereof rejection, or assignment”; and (C) striking out “under section 365 of this title” and inserting in lieu thereof “under such section”; and (4) in paragraph (8), by striking out “any”. Sec. 529. Section 1324 of title 11 of the United States Code is amended by striking out “the” the second place it appears. Sec. 530. Section 1325(a)(1) of title 11 of the United States Code is amended by inserting “the” before “other”. Sec. 531. Section 1326(b)(2) of title 11 of the United States Code as amended by section 318 is amended by inserting “of this title” after Ante, p. 357. “1302(d)”. Sec. 532. Section 1328(e) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “by the debtor” after “obtained”; and (2) in paragraph (2), by striking out “knowledge of such fraud came to the requesting party” and inserting in lieu thereof “the requesting party did not know of such fraud until”. Sec. 533. Section 1329(a) of title 11 of the United States Code is amended— (1) by inserting “of the plan” after “confirmation”; (2) by striking out “a plan” and inserting in lieu thereof “such plan”; and (3) in paragraph (3), by striking out the comma. Sec. 534. Section 151302(a) of title 11 of the United States Code is amended by inserting “, or shall appoint a disinterested person to serve,” after “The United States trustee shall serve”. Subtitle J— Collective Bargaining Agreements Sec. 541. (a) Title 11 of the United States Code is amended by adding after section 1112 the following new section: “§ 1113. Rejection of collective bargaining agreements “(a) The debtor in possession, or the trustee if one has been appointed under the provisions of this chapter, other than a trustee 11 USC 1161. 45 USC 151. in a case covered by subchapter IV of this chapter and by title I of the Railway Labor Act, may assume or reject a collective bargaining agreement only in accordance with the provisions of this section. “(b) (1) Subsequent to filing a petition and prior to filing an application seeking rejection of a collective bargaining agreement, the debtor in possession or trustee (hereinafter in this section ‘trustee’ shall include a debtor in possession), shall— “(A) make a proposal to the authorized representative of the employees covered by such agreement, based on the most complete and reliable information available at the time of such proposal, which provides for those necessary modifications in the employees benefits and protections that are necessary to permit the reorganization of the debtor and assures that all creditors, the debtor and all of the affected parties are treated fairly and equitably; and “(B) provide, subject to subsection (d)(3), the representative of the employees with such relevant information as is necessary to evaluate the proposal. “(2) During the period beginning on the date of the making of a proposal provided for in paragraph (1) and ending on the date of the hearing provided for in subsection (d)(1), the trustee shall meet, at reasonable times, with the authorized representative to confer in good faith in attempting to reach mutually satisfactory modifications of such agreement. “(c) The court shall approve an application for rejection of a collective bargaining agreement only if the court finds that— “(1) the trustee has, prior to the hearing, made a proposal that fulfills the requirements of subsection (b)(1); “(2) the authorized representative of the employees has refused to accept such proposal without good cause; and “(3) the balance of the equities clearly favors rejection of such agreement. “(d) (1) Upon the filing of an application for rejection the court shall schedule a hearing to be held not later than fourteen days after the date of the filing of such application. All interested parties may appear and be heard at such hearing. Adequate notice shall be provided to such parties at least ten days before the date of such nearing. The court may extend the time for the commencement of such hearing for a period not exceeding seven days where the circumstances of the case, and the interests of justice require such extension, or for additional periods of time to which the trustee and representative agree. “(2) The court shall rule on such application for rejection within thirty days after the date of the commencement of the hearing. In the interests of justice, the court may extend such time for ruling for such additional period as the trustee and the employees’ representative may agree to. If the court does not rule on such application within thirty days after the date of the commencement of the hearing, or within such additional time as the trustee and the employees’ representative may agree to, the trustee may terminate or alter any provisions of the collective bargaining agreement pending the ruling of the court on such application. “(3) The court may enter such protective orders, consistent with Confidentiality. the need of the authorized representative of the employee to evaluate the trustee’s proposal and the application for rejection, as may be necessary to prevent disclosure of information provided to such representative where such disclosure could compromise the position of the debtor with respect to its competitors in the industry in which it is engaged. “(e) If during a period when the collective bargaining agreement continues in effect, and if essential to the continuation of the debtor’s business, or in order to avoid irreparable damage to the estate, the court, after notice and a hearing, may authorize the trustee to implement interim changes in the terms, conditions, wages, benefits, or work rules provided by a collective bargaining agreement. Any hearing under this paragraph shall be scheduled in accordance with the needs of the trustee. The implementation of such interim changes shall not render the application for rejection moot. “(f) No provision of this title shall be construed to permit a trustee to unilaterally terminate or alter any provisions of a collective bargaining agreement prior to compliance with the provisions of this section.”. (b) The table of sections for chapter 11 of title 11, United States Code, is amended by inserting after the item relating to section 1112 the following new item: “1113. Rejection of collective bargaining agreements.”. (c) The amendments made by this section shall become effective Effective date. 11 USC 1113 note. upon the date of enactment of this Act; provided that this section shall not apply to cases filed under title 11 of the United States Code which were commenced prior to the date of enactment of this section. Subtitle K— Miscellaneous Sec. 551. If any provision of this title or any amendment made by Provisions held invalid. 11 USC 101 note. this title, or the application thereof to any person or circumstance is held invalid, the provisions of every other part, and their application shall not be affected thereby. Sec. 552. Notwithstanding the provisions of section 8331(22) of title 5, United States Code, or any other provision of law, for purposes of section 8339(n) of title 5, United States Code, any individual appointed under section 34 of the Bankruptcy Act who served as a United States bankruptcy judge for Ante, p. 343. the district of Oregon or for the Central district of California until March 31, 1984, shall receive an annuity computed with respect to his service as a referee in bankruptcy and as a bankruptcy judge, and his military service (not exceeding five years) creditable under section 8332 of title 5, United States Code, by multiplying 2¼ per centum of his average annual pay by the years of that service. Sec. 553. (a) Except as otherwise provided in this section the amendments made by this title shall become effective to cases filed 90 days after the date of enactment of this Act. (b) The amendments made by section 426(b) shall become effective upon the date of enactment of this Act. (c) The amendments made by subtitle J, shall become effective as provided in section 541(c).
1984
Pub. L. 98–353 § 371(2) · 98 Stat. 333
Added · 11 U.S.C. § 523(a)(9)
Pub. L. 98–353, § 371(2), added the par. (9) relating to debts incurred by persons driving while intoxicated
Source evidence
Code amendment note
Subsec. (a)(9). Pub. L. 98–353, § 371(2), added the par. (9) relating to debts incurred by persons driving while intoxicated.
Enacted provision · exact public law section
(2) by adding the following new paragraph after such paragraph: “(9) to any entity, to the extent that such debt arises from a judgment or consent decree entered in a court of record against the debtor wherein liability was incurred by such debtor as a result of the debtor’s operation of a motor vehicle while legally intoxicated under the laws or regulations of any jurisdiction within the United States or its territories wherein such motor vehicle was operated and within which such liability was incurred; or”.
1984
Pub. L. 98–353 § 454(c) · 98 Stat. 333
Inserted · 11 U.S.C. § 523(c)
Pub. L. 98–353, § 454(c), inserted “of a kind” after “debt”
Source evidence
Code amendment note
Subsec. (c). Pub. L. 98–353, § 454(c), inserted “of a kind” after “debt”.
Enacted provision · exact public law section
(c) Section 523(c) of title 11 of the United States Code is amended by inserting “of a kind” after “debt” the first time it appears.
1984
Pub. L. 98–353 § 307(b) · 98 Stat. 333
Substituted · 11 U.S.C. § 523(d)
Pub. L. 98–353, § 307(b), substituted “the court shall grant judgment in favor of the debtor for the costs of, and a reasonable attorney’s fee for, the proceeding if the court finds that the position of the creditor was not substantially justified, except that the court shall not award such costs and fees if special circumstances would make the award unjust” for “the court shall grant judgment against such creditor and in favor of the debtor for the costs of, and a reasonable attorney’s fee for, the proceeding to determine dischargeability, unless such granting of judgment would be clearly inequitable”
Source evidence
Code amendment note
Subsec. (d). Pub. L. 98–353, § 307(b), substituted “the court shall grant judgment in favor of the debtor for the costs of, and a reasonable attorney’s fee for, the proceeding if the court finds that the position of the creditor was not substantially justified, except that the court shall not award such costs and fees if special circumstances would make the award unjust” for “the court shall grant judgment against such creditor and in favor of the debtor for the costs of, and a reasonable attorney’s fee for, the proceeding to determine dischargeability, unless such granting of judgment would be clearly inequitable”.
Enacted provision · exact public law section
(b) Section 523(d) of title 11, United States Code, is amended to read as follows: “(d) If a creditor requests a determination of dischargeability of a consumer debt under subsection (a)(2) of this section, and such debt is discharged, the court shall grant judgment in favor of the debtor for the costs of, and a reasonable attorney’s fee for, the proceeding if the court finds that the position of the creditor was not substantially justified, except that the court shall not award such costs and fees if special circumstances would make the award unjust.”.
1986
Bankruptcy Judges, United States Trustees, and Family Farmer Bankruptcy Act of 1986
Pub. L. 99–554 § 257(n) · 100 Stat. 3088
Inserted · 11 U.S.C. § 523(a)
Pub. L. 99–554, § 257(n), inserted reference to sections 1228(a) and 1228(b) of this title
Source evidence
Code amendment note
Subsec. (a). Pub. L. 99–554, § 257(n), inserted reference to sections 1228(a) and 1228(b) of this title.
Enacted provision · exact public law section
(n) Section 523(a) of title 11, United States Code, is amended by striking out “or 1328(b)” and inserting in lieu thereof “, 1228(a), 1228(b), or 1328(b)”.
1986
Bankruptcy Judges, United States Trustees, and Family Farmer Bankruptcy Act of 1986
Pub. L. 99–554 § 283(j)(1)(A) · 100 Stat. 3088
Substituted · 11 U.S.C. § 523(a)(1)(A)
Pub. L. 99–554, § 283(j)(1)(A), substituted “507(a)(7)” for “507(a)(6)”
Source evidence
Code amendment note
Subsec. (a)(1)(A). Pub. L. 99–554, § 283(j)(1)(A), substituted “507(a)(7)” for “507(a)(6)”.
Enacted provision · exact public law section
(A) in subparagraph (1)(A) by striking out “507(a)(6)” and inserting in lieu thereof “507(a)(7)”, and
1986
Bankruptcy Judges, United States Trustees, and Family Farmer Bankruptcy Act of 1986
Pub. L. 99–554 § 281 · 100 Stat. 3088
Struck and inserted · 11 U.S.C. § 523(a)(5)
Pub. L. 99–554, § 281, struck out the comma after “decree” and inserted “, determination made in accordance with State or territorial law by a governmental unit,” after “record”
Source evidence
Code amendment note
Subsec. (a)(5). Pub. L. 99–554, § 281, struck out the comma after “decree” and inserted “, determination made in accordance with State or territorial law by a governmental unit,” after “record”.
Enacted provision · exact public law section
SEC. 281. SUPPORT OBLIGATIONS. Section 523(a)(5) of title 11, United States Code, is amended— (1) by striking out “decree,” and inserting in lieu thereof “decree”, and (2) by inserting “, determination made in accordance with State or territorial law by a governmental unit,” after “record”.
1986
Bankruptcy Judges, United States Trustees, and Family Farmer Bankruptcy Act of 1986
Pub. L. 99–554 § 283(j)(1)(B) · 100 Stat. 3088
1. Redesignated · 11 U.S.C. § 523(a)(9); 11 U.S.C. § 523(a)(10)
  Pub. L. 99–554, § 283(j)(1)(B), redesignated par. (9) relating to debts incurred by persons driving while intoxicated
2. Added · 11 U.S.C. § 523(a)(9); 11 U.S.C. § 523(a)(10)
  Pub. L. 99–554, § 283(j)(1)(B), added by Pub. L. 98–353, as (10)
Source evidence
Code amendment note
Subsec. (a)(9), (10). Pub. L. 99–554, § 283(j)(1)(B), redesignated par. (9) relating to debts incurred by persons driving while intoxicated, added by Pub. L. 98–353, as (10).
Enacted provision · exact public law section
(B) by redesignating the second paragraph (9) as paragraph (10).
1986
Bankruptcy Judges, United States Trustees, and Family Farmer Bankruptcy Act of 1986
Pub. L. 99–554 § 283(j)(2) · 100 Stat. 3088
Substituted · 11 U.S.C. § 523(b)
Pub. L. 99–554, § 283(j)(2), substituted “Service” for “Services”
Source evidence
Code amendment note
Subsec. (b). Pub. L. 99–554, § 283(j)(2), substituted “Service” for “Services”.
Enacted provision · exact public law section
(2) Section 523(b) of title 11, United States Code, is amended by striking out “Services” and inserting in lieu thereof “Service”.
1990
Criminal Victims Protection Act of 1990
Pub. L. 101–581 § 2(a) · 104 Stat. 2865
Amended · 11 U.S.C. § 523(a)(9)
Pub. L. 101–581 and Pub. L. 101–647, § 3102(a), identically amended par. (9) generally. Prior to amendment, par. (9) read as follows: “to any entity, to the extent that such debt arises from a judgment or consent decree entered in a court of record against the debtor wherein liability was incurred by such debtor as a result of the debtor’s operation of a motor vehicle while legally intoxicated under the laws or regulations of any jurisdiction within the United States or its territories wherein such motor vehicle was operated and within which such liability was incurred; or”
Source evidence
Code amendment note
Subsec. (a)(9). Pub. L. 101–581 and Pub. L. 101–647, § 3102(a), identically amended par. (9) generally. Prior to amendment, par. (9) read as follows: “to any entity, to the extent that such debt arises from a judgment or consent decree entered in a court of record against the debtor wherein liability was incurred by such debtor as a result of the debtor’s operation of a motor vehicle while legally intoxicated under the laws or regulations of any jurisdiction within the United States or its territories wherein such motor vehicle was operated and within which such liability was incurred; or”.
Enacted provision · exact public law section
(a) Amendment to Chapter 5.— Section 523(a)(9) of title 11, United States Code, is amended to read as follows: “(9) for death or personal injury caused by the debtor’s operation of a motor vehicle if such operation was unlawful because the debtor was intoxicated from using alcohol, a drug, or another substance; or”.
1990
Federal Debt Collection Procedures Act of 1990
Pub. L. 101–647 § 3621 · 104 Stat. 4789
1. Substituted · 11 U.S.C. § 523(a)(8)
  Pub. L. 101–647, § 3621, substituted “for 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 for an obligation to repay funds received as an educational benefit, scholarship or stipend, unless” for “for an educational 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 a nonprofit institution, unless” in introductory provisions
2. Amended · 11 U.S.C. § 523(a)(8)
  Pub. L. 101–647, § 3621, amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “such loan first became due before five years (exclusive of any applicable suspension of the repayment period) before the date of the filing of the petition; or”
Source evidence
Code amendment note
Subsec. (a)(8). Pub. L. 101–647, § 3621, substituted “for 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 for an obligation to repay funds received as an educational benefit, scholarship or stipend, unless” for “for an educational 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 a nonprofit institution, unless” in introductory provisions and amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “such loan first became due before five years (exclusive of any applicable suspension of the repayment period) before the date of the filing of the petition; or”.
Enacted provision · exact public law section
Sec. 3621. Section 523(a)(8) of title 11, United States Code, is amended— (1) by striking “for an educational” and all that follows through “unless”, and inserting the following: “for an educational benefit overpayment or loan made, insured or guaran-teed by a governmental unit, or made under any program funded in whole or in part by a governmental unit or nonprofit institution, or for an obligation to repay funds received as an educational benefit, scholarship or stipend, unless”; and (2) by amending subparagraph (A) to read as follows: “(A) such loan, benefit, scholarship, or stipend overpayment first became due more than 7 years (exclusive of any applicable suspension of the repayment period) before the date of the filing of the petition; or”.
1990
Comprehensive Thrift and Bank Fraud Prosecution and Taxpayer Recovery Act of 1990
Pub. L. 101–647 § 2522(a)(1) · 104 Stat. 4789
Added · 11 U.S.C. § 523(a)(11); 11 U.S.C. § 523(a)(12)
Pub. L. 101–647, § 2522(a)(1), added pars. (11) and (12)
Source evidence
Code amendment note
Subsec. (a)(11), (12). Pub. L. 101–647, § 2522(a)(1), added pars. (11) and (12).
Enacted provision · exact public law section
(1) in subsection (a) by— (A) striking “or” at the end of paragraph (9); (B) striking the period at the end of paragraph (10) and inserting a semicolon; and (C) adding at the end thereof the following new paragraphs: “(11) provided in any final judgment, unreviewable order, or consent order or decree entered in any court of the United States or of any State, issued by a Federal depository institutions regulatory agency, or contained in any settlement agreement entered into by the debtor, arising from any act of fraud or defalcation while acting in a fiduciary capacity committed with respect to any depository institution or insured credit union; or “(12) for malicious or reckless failure to fulfill any commitment by the debtor to a Federal depository institutions regulatory agency to maintain the capital of an insured depository institution, except that this paragraph shall not extend any such commitment which would otherwise be terminated due to any act of such agency;”; and
1990
Comprehensive Thrift and Bank Fraud Prosecution and Taxpayer Recovery Act of 1990
Pub. L. 101–647 § 2522(a)(3) · 104 Stat. 4789
1. Amended · 11 U.S.C. § 523(c)
  Pub. L. 101–647, § 2522(a)(3), designated existing provisions as par. (1)
2. Added · 11 U.S.C. § 523(c)
  Pub. L. 101–647, § 2522(a)(3), added par. (2)
Source evidence
Code amendment note
Subsec. (c). Pub. L. 101–647, § 2522(a)(3), designated existing provisions as par. (1) and added par. (2).
Enacted provision · exact public law section
(3) in subsection (c)— (A) by inserting “(1)” after “(c)”; and (B) by adding at the end the following: “(2) Paragraph (1) shall not apply in the case of a Federal depository institutions regulatory agency seeking, in its capacity as conservator, receiver, or liquidating agent for an insured depository institution, to recover a debt described in subsection (a)(2), (a)(4), (a)(6), or (a)(11) owed to such institution by an institution-affiliated party unless the receiver, conservator, or liquidating agent was appointed in time to reasonably comply, or for a Federal depository institutions regulatory agency acting in its corporate capacity as a successor to such receiver, conservator, or liquidating agent to reasonably comply, with subsection (a)(3)(B) as a creditor of such institution-affiliated party with respect to such debt.”.
1990
Comprehensive Thrift and Bank Fraud Prosecution and Taxpayer Recovery Act of 1990
Pub. L. 101–647 § 2522(a)(2) · 104 Stat. 4789
Added · 11 U.S.C. § 523(e)
Pub. L. 101–647, § 2522(a)(2), added subsec. (e)
Source evidence
Code amendment note
Subsec. (e). Pub. L. 101–647, § 2522(a)(2), added subsec. (e).
Enacted provision · exact public law section
(2) by adding at the end thereof the following new subsections: “(e) Any institution-affiliated party of a depository institution or insured credit union shall be considered to be acting in a fiduciary capacity with respect to the purposes of subsection (a) (4) or (11).”; and
1994
Violent Crime Control and Law Enforcement Act of 1994
Pub. L. 103–322 § 320934(1) · 108 Stat. 1796
Struck · 11 U.S.C. § 523(a)(11)
Pub. L. 103–322, § 320934(1), struck out “or” after semicolon at end
Source evidence
Code amendment note
Subsec. (a)(11). Pub. L. 103–322, § 320934(1), struck out “or” after semicolon at end.
Enacted provision · exact public law section
(1) by striking “or” at the end of paragraph (11);
1994
Violent Crime Control and Law Enforcement Act of 1994
Pub. L. 103–322 § 320934(2) · 108 Stat. 1796
Substituted · 11 U.S.C. § 523(a)(12)
Pub. L. 103–322, § 320934(2), which directed the substitution of “; or” for a period at end of par. (12), could not be executed because a period did not appear at end
Source evidence
Code amendment note
Subsec. (a)(12). Pub. L. 103–322, § 320934(2), which directed the substitution of “; or” for a period at end of par. (12), could not be executed because a period did not appear at end.
Enacted provision · exact public law section
(2) by striking the period at the end of paragraph (12) and inserting “; or”; and
1994
Violent Crime Control and Law Enforcement Act of 1994
Pub. L. 103–322 § 320934(3) · 108 Stat. 1796
Added · 11 U.S.C. § 523(a)(13)
Pub. L. 103–322, § 320934(3), added par. (13)
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 103–322, § 320934(3), added par. (13).
Enacted provision · exact public law section
(3) by adding at the end the following new paragraph: “(13) for any payment of an order of restitution issued under title 18, United States Code.”.
1994
Bankruptcy Reform Act of 1994
Pub. L. 103–394 § 304(e)(s1) · 108 Stat. 4106
Added · 11 U.S.C. § 523(15)
Pub. L. 103–394, § 304(e)[(1)], amended this section by adding par. (15) at the end. See 2005 Amendment note above
Source evidence
Code amendment note
Par. (15). Pub. L. 103–394, § 304(e)[(1)], amended this section by adding par. (15) at the end. See 2005 Amendment note above.
Enacted provision · exact public law section
(e) Exception to Discharge.— Section 523 of title 11, United States Code, as amended by section 221, is amended by adding at the end the following: “(15) not of the kind described in paragraph (5) that is incurred by the debtor in the course of a divorce or separation or in connection with a separation agreement divorce decree or other order of a court of record, a determination made in accordance with State or territorial law by a governmental unit unless— “(A) the debtor does not have the ability to pay such debt from income or property of the debtor not reasonably necessary to be expended for the maintenance or support of the debtor or a dependent of the debtor and, if the debtor is engaged in a business, for the payment of expenditures necessary for the continuation, preservation, and operation of such business; or “(B) discharging such debt would result in a benefit to the debtor that outweighs the detrimental consequences to a spouse, former spouse, or child of the debtor;”, and (2) in subsection (c)(1) by striking “or (6)” each place it appears and inserting “(6), or (15)”.
1994
Bankruptcy Reform Act of 1994
Pub. L. 103–394 § 501(d)(13)(A)(i) · 108 Stat. 4106
Substituted · 11 U.S.C. § 523(a)
Pub. L. 103–394, § 501(d)(13)(A)(i), substituted “1141,” for “1141,,” in introductory provisions
Source evidence
Code amendment note
Subsec. (a). Pub. L. 103–394, § 501(d)(13)(A)(i), substituted “1141,” for “1141,,” in introductory provisions.
Enacted provision · exact public law section
(i) by striking “1141,,” and inserting “1141,”, and
1994
Bankruptcy Reform Act of 1994
Pub. L. 103–394 § 304(h)(3) · 108 Stat. 4106
Substituted · 11 U.S.C. § 523(a)(1)(A)
Pub. L. 103–394, § 304(h)(3), substituted “507(a)(8)” for “507(a)(7)”
Source evidence
Code amendment note
Subsec. (a)(1)(A). Pub. L. 103–394, § 304(h)(3), substituted “507(a)(8)” for “507(a)(7)”.
Enacted provision · exact public law section
(3) in section 523(a)(1)(A) by striking “507(a)(7)” and inserting “507(a)(8)”,
1994
Bankruptcy Reform Act of 1994
Pub. L. 103–394 title II § 221 · 108 Stat. 4106
1. Substituted · 11 U.S.C. § 523(a)(2)(C)
  Pub. L. 103–394, §§ 306, 501(d)(13)(A)(ii), substituted “$1,000 for” for “$500 for” after “obtained by an individual debtor on or within”
2. Substituted · 11 U.S.C. § 523(a)(2)(C)
  Pub. L. 103–394, §§ 306, 501(d)(13)(A)(ii), substituted “60” for “forty” after “obtained by an individual debtor on or within”
3. Substituted · 11 U.S.C. § 523(a)(2)(C)
  Pub. L. 103–394, §§ 306, 501(d)(13)(A)(ii), substituted “60” for “twenty” after “obtained by an individual debtor on or within”
4. Struck · 11 U.S.C. § 523(a)(2)(C)
  Pub. L. 103–394, §§ 306, 501(d)(13)(A)(ii), struck out “(15 U.S.C. 1601 et seq.)” after “Protection Act”
Source evidence
Code amendment note
Subsec. (a)(2)(C). Pub. L. 103–394, §§ 306, 501(d)(13)(A)(ii), substituted “$1,000 for” for “$500 for”, “60” for “forty” after “incurred by an individual debtor on or within”, and “60” for “twenty” after “obtained by an individual debtor on or within”, and struck out “(15 U.S.C. 1601 et seq.)” after “Protection Act”.
Enacted provision · exact public law section
SEC. 221. PAYMENT OF TAXES WITH BORROWED FUNDS. Section 523(a) of title 11, United States Code, is amended— (1) in paragraph (13) by striking the period at the end and inserting a semicolon, and (2) by adding at the end the following: “(14) incurred to pay a tax to the United States that would be nondischargeable pursuant to paragraph (1);”.
1994
Bankruptcy Reform Act of 1994
Pub. L. 103–394 § 221(1) · 108 Stat. 4106
Substituted · 11 U.S.C. § 523(a)(13)
Pub. L. 103–394, § 221(1), substituted semicolon for period at end
Source evidence
Code amendment note
Subsec. (a)(13). Pub. L. 103–394, § 221(1), substituted semicolon for period at end.
Enacted provision · exact public law section
(1) in paragraph (13) by striking the period at the end and inserting a semicolon, and
1994
Bankruptcy Reform Act of 1994
Pub. L. 103–394 § 221(2) · 108 Stat. 4106
Added · 11 U.S.C. § 523(a)(14)
Pub. L. 103–394, § 221(2), added par. (14)
Source evidence
Code amendment note
Subsec. (a)(14). Pub. L. 103–394, § 221(2), added par. (14).
Enacted provision · exact public law section
(2) by adding at the end the following: “(14) incurred to pay a tax to the United States that would be nondischargeable pursuant to paragraph (1);”.
1994
Bankruptcy Reform Act of 1994
Pub. L. 103–394 § 309 · 108 Stat. 4106
Added · 11 U.S.C. § 523(a)(16)
Pub. L. 103–394, § 309, added par. (16)
Source evidence
Code amendment note
Subsec. (a)(16). Pub. L. 103–394, § 309, added par. (16).
Enacted provision · exact public law section
SEC. 309. FAIRNESS TO CONDOMINIUM AND COOPERATIVE OWNERS. Section 523(a) of title 11, United States Code, as amended by sections 221 and 304, is amended by adding at the end the following: “(16) for a fee or assessment that becomes due and payable after the order for relief to a membership association with respect to the debtor’s interest in a dwelling unit that has condominium ownership or in a share of a cooperative housing corporation, but only if such fee or assessment is payable for a period during which— “(A) the debtor physically occupied a dwelling unit in the condominium or cooperative project; or “(B) the debtor rented the dwelling unit to a tenant and received payments from the tenant for such period, but nothing in this paragraph shall except from discharge the debt of a debtor for a membership association fee or assessment for a period arising before entry of the order for relief in a pending or subsequent bankruptcy case.”.
1994
Bankruptcy Reform Act of 1994
Pub. L. 103–394 § 501(d)(13)(B) · 108 Stat. 4106
Struck · 11 U.S.C. § 523(b)
Pub. L. 103–394, § 501(d)(13)(B), struck out “(20 U.S.C. 1087–3)” after “Act of 1965” and “(42 U.S.C. 294f)” after “Service Act”
Source evidence
Code amendment note
Subsec. (b). Pub. L. 103–394, § 501(d)(13)(B), struck out “(20 U.S.C. 1087–3)” after “Act of 1965” and “(42 U.S.C. 294f)” after “Service Act”.
Enacted provision · exact public law section
(B) in subsection (b)— (i) by striking “(20 U.S.C. 1087–3)”, and (ii) by striking “(42 U.S.C. 294f)”, and
1994
Bankruptcy Reform Act of 1994
Pub. L. 103–394 § 304(e)(2) · 108 Stat. 4106
Substituted · 11 U.S.C. § 523(c)(1)
Pub. L. 103–394, § 304(e)(2), substituted “(6), or (15)” for “or (6)” in two places
Source evidence
Code amendment note
Subsec. (c)(1). Pub. L. 103–394, § 304(e)(2), substituted “(6), or (15)” for “or (6)” in two places.
Enacted provision · exact public law section
(e) Exception to Discharge.— Section 523 of title 11, United States Code, as amended by section 221, is amended by adding at the end the following: “(15) not of the kind described in paragraph (5) that is incurred by the debtor in the course of a divorce or separation or in connection with a separation agreement divorce decree or other order of a court of record, a determination made in accordance with State or territorial law by a governmental unit unless— “(A) the debtor does not have the ability to pay such debt from income or property of the debtor not reasonably necessary to be expended for the maintenance or support of the debtor or a dependent of the debtor and, if the debtor is engaged in a business, for the payment of expenditures necessary for the continuation, preservation, and operation of such business; or “(B) discharging such debt would result in a benefit to the debtor that outweighs the detrimental consequences to a spouse, former spouse, or child of the debtor;”, and (2) in subsection (c)(1) by striking “or (6)” each place it appears and inserting “(6), or (15)”.
1994
Bankruptcy Reform Act of 1994
Pub. L. 103–394 § 501(d)(13)(C) · 108 Stat. 4106
Substituted · 11 U.S.C. § 523(e)
Pub. L. 103–394, § 501(d)(13)(C), substituted “insured depository institution” for “depository institution or insured credit union”
Source evidence
Code amendment note
Subsec. (e). Pub. L. 103–394, § 501(d)(13)(C), substituted “insured depository institution” for “depository institution or insured credit union”.
Enacted provision · exact public law section
(C) in subsection (e) by striking “depository institution or insured credit union” and inserting “insured depository institution”,
1996
Pub. L. 104–134 title I § 101 · 110 Stat. 1321
Added · 11 U.S.C. § 523(a)(17)
Pub. L. 104–134 added par. (17)
Source evidence
Code amendment note
Subsec. (a)(17). Pub. L. 104–134 added par. (17).
Enacted provision · exact public law section
Section 101. For programs, projects or activities in the Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies Appropriations Act, 1996, provided as follows, to be effective as if it had been enacted into law as the regular appropriations Act:
1996
Personal Responsibility and Work Opportunity Reconciliation Act of 1996
Pub. L. 104–193 § 374(a)(4) · 110 Stat. 2105
Substituted · 11 U.S.C. § 523(a)(5)(A)
Pub. L. 104–193, § 374(a)(4), substituted “section 408(a)(3)” for “section 402(a)(26)”
Source evidence
Code amendment note
Subsec. (a)(5)(A). Pub. L. 104–193, § 374(a)(4), substituted “section 408(a)(3)” for “section 402(a)(26)”.
Enacted provision · exact public law section
(4) in paragraph (5), by striking “section 402(a)(26)” and inserting “section 408(a)(3)”.
1996
Personal Responsibility and Work Opportunity Reconciliation Act of 1996
Pub. L. 104–193 § 374(a)(1) · 110 Stat. 2105
Added · 11 U.S.C. § 523(a)(18)
Pub. L. 104–193, § 374(a)(1)–(3), added par. (18)
Source evidence
Code amendment note
Subsec. (a)(18). Pub. L. 104–193, § 374(a)(1)–(3), added par. (18).
Enacted provision · exact public law section
(1) by striking “or” at the end of paragraph (16);
1998
Higher Education Amendments of 1998
Pub. L. 105–244 title IX § 971(a) · 112 Stat. 1581
1. Substituted · 11 U.S.C. § 523(a)(8)
  Pub. L. 105–244 substituted “stipend, unless” for “stipend, unless—”
2. Struck · 11 U.S.C. § 523(a)(8)
  Pub. L. 105–244 struck out “(B)” before “excepting such debt” and subpar. (A) which read as follows: “such loan, benefit, scholarship, or stipend overpayment first became due more than 7 years (exclusive of any applicable suspension of the repayment period) before the date of the filing of the petition; or”
Source evidence
Code amendment note
Subsec. (a)(8). Pub. L. 105–244 substituted “stipend, unless” for “stipend, unless—” and struck out “(B)” before “excepting such debt” and subpar. (A) which read as follows: “such loan, benefit, scholarship, or stipend overpayment first became due more than 7 years (exclusive of any applicable suspension of the repayment period) before the date of the filing of the petition; or”.
Enacted provision · exact public law section
(a) Amendment.— Section 523(a)(8) of title 11, United States Code, is amended by striking “unless—” and all that follows through “(B) excepting such debt” and inserting “unless excepting such debt”.
2002
Sarbanes-Oxley Act of 2002
Pub. L. 107–204 title VIII § 803 · 116 Stat. 745
Added · 11 U.S.C. § 523(a)(19)
Pub. L. 107–204 added par. (19)
Source evidence
Code amendment note
Subsec. (a)(19). Pub. L. 107–204 added par. (19).
Enacted provision · exact public law section
SEC. 803. DEBTS NONDISCHARGEABLE IF INCURRED IN VIOLATION OF SECURITIES FRAUD LAWS. Section 523(a) of title 11, United States Code, is amended— (1) in paragraph (17), by striking “or” after the semicolon; (2) in paragraph (18), by striking the period at the end and inserting or”; and (3) by adding at the end, the following: “(19) that- “(A) is for— “(i) the violation of any of the Federal securities laws (as that term is defined in section 3(a)(47) of the Securities Exchange Act of 1934), any of the State securities laws, or any regulation or order issued under such Federal or State securities laws; or “(ii) common law fraud, deceit, or manipulation in connection with the purchase or sale of any security; and “(B) results from— “(i) any judgment, order, consent order, or decree entered in any Federal or State judicial or administrative proceeding; “(ii) any settlement agreement entered into by the debtor; or “(iii) any court or administrative order for any damages, fine, penalty, citation, restitutionary payment, disgorgement payment, attorney fee, cost, or other payment owed by the debtor.”.
2005
Pub. L. 109–8 § 1209(1) · 119 Stat. 23
Inserted · 11 U.S.C. § 523
Pub. L. 109–8, § 1209(1), transferred par. (15) and inserted it after subsec. (a)(14A). See 1994 Amendments note below
Source evidence
Code amendment note
Pub. L. 109–8, § 1209(1), transferred par. (15) and inserted it after subsec. (a)(14A). See 1994 Amendments note below.
Enacted provision · exact public law section
(1) by transferring paragraph (15), as added by section 304(e) of Public Law 103–394 (108 Stat. 4133), so as to insert such paragraph after subsection (a)(14A);
2005
Pub. L. 109–8 § 215(3) · 119 Stat. 23
1. Inserted · 11 U.S.C. § 523
  Pub. L. 109–8, § 215(3), in par. (15), inserted “to a spouse, former spouse, or child of the debtor and” before “not of the kind” and “or” after “court of record,”
2. Substituted · 11 U.S.C. § 523
  Pub. L. 109–8, § 215(3), in par. (15), substituted a semicolon for “unless—
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 109–8, § 215(3), in par. (15), inserted “to a spouse, former spouse, or child of the debtor and” before “not of the kind” and “or” after “court of record,” and substituted a semicolon for “unless—
“(A) the debtor does not have the ability to pay such debt from income or property of the debtor not reasonably necessary to be expended for the maintenance or support of the debtor or a dependent of the debtor and, if the debtor is engaged in a business, for the payment of expenditures necessary for the continuation, preservation, and operation of such business; or “(B) discharging such debt would result in a benefit to the debtor that outweighs the detrimental consequences to a spouse, former spouse, or child of the debtor;”.
Enacted provision · exact public law section
(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.
2005
Pub. L. 109–8 § 714(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 523(a)
Pub. L. 109–8, § 714(2), inserted at end “For purposes of this subsection, the term ‘return’ means a return that satisfies the requirements of applicable nonbankruptcy law (including applicable filing requirements). Such term includes a return prepared pursuant to section 6020(a) of the Internal Revenue Code of 1986, or similar State or local law, or a written stipulation to a judgment or a final order entered by a nonbankruptcy tribunal, but does not include a return made pursuant to section 6020(b) of the Internal Revenue Code of 1986, or a similar State or local law.”
Source evidence
Code amendment note
Subsec. (a). Pub. L. 109–8, § 714(2), inserted at end “For purposes of this subsection, the term ‘return’ means a return that satisfies the requirements of applicable nonbankruptcy law (including applicable filing requirements). Such term includes a return prepared pursuant to section 6020(a) of the Internal Revenue Code of 1986, or similar State or local law, or a written stipulation to a judgment or a final order entered by a nonbankruptcy tribunal, but does not include a return made pursuant to section 6020(b) of the Internal Revenue Code of 1986, or a similar State or local law.”
Enacted provision · exact public law section
(2) by adding at the end the following: “For purposes of this subsection, the term ‘return’ means a return that satisfies the requirements of applicable nonbankruptcy law (including applicable filing requirements). Such term includes a return prepared pursuant to section 6020(a) of the Internal Revenue Code of 1986, or similar State or local law, or a written stipulation to a judgment or a final order entered by a nonbankruptcy tribunal, but does not include a return made pursuant to section 6020(b) of the Internal Revenue Code of 1986, or a similar State or local law.” .
2005
Pub. L. 109–8 § 1502(a)(2) · 119 Stat. 23
Substituted · 11 U.S.C. § 523(a)(1)(A)
Pub. L. 109–8, § 1502(a)(2), substituted “507(a)(3)” for “507(a)(2)”
Source evidence
Code amendment note
Subsec. (a)(1)(A). Pub. L. 109–8, § 1502(a)(2), substituted “507(a)(3)” for “507(a)(2)”.
Enacted provision · exact public law section
(2) in section 523(a)(1)(A) by striking “507(a)(2)” and inserting “507(a)(3)”;
2005
Pub. L. 109–8 § 714(1)(A) · 119 Stat. 23
Inserted · 11 U.S.C. § 523(a)(1)(B)
Pub. L. 109–8, § 714(1)(A), inserted “or equivalent report or notice,” after “a return,” in introductory provisions
Source evidence
Code amendment note
Subsec. (a)(1)(B). Pub. L. 109–8, § 714(1)(A), inserted “or equivalent report or notice,” after “a return,” in introductory provisions.
Enacted provision · exact public law section
(A) in the matter preceding clause (i), by inserting “or equivalent report or notice,” after “a return,”;
2005
Pub. L. 109–8 § 714(1)(B) · 119 Stat. 23
Inserted · 11 U.S.C. § 523(a)(1)(B)(i)
Pub. L. 109–8, § 714(1)(B), inserted “or given” after “filed”
Source evidence
Code amendment note
Subsec. (a)(1)(B)(i). Pub. L. 109–8, § 714(1)(B), inserted “or given” after “filed”.
Enacted provision · exact public law section
(B) in clause (i), by inserting “or given” after “filed”; and
2005
Pub. L. 109–8 § 714(1)(C) · 119 Stat. 23
Inserted · 11 U.S.C. § 523(a)(1)(B)(ii)
Pub. L. 109–8, § 714(1)(C), inserted “or given” after “filed” and “, report, or notice” after “return”
Source evidence
Code amendment note
Subsec. (a)(1)(B)(ii). Pub. L. 109–8, § 714(1)(C), inserted “or given” after “filed” and “, report, or notice” after “return”.
Enacted provision · exact public law section
(C) in clause (ii)— (i) by inserting “or given” after “filed”; and (ii) by inserting “, report, or notice” after “return”; and
2005
Pub. L. 109–8 § 310 · 119 Stat. 23
Amended · 11 U.S.C. § 523(a)(2)(C)
Pub. L. 109–8, § 310, amended subpar. (C) generally. Prior to amendment, subpar. (C) read as follows: “for purposes of subparagraph (A) of this paragraph, consumer debts owed to a single creditor and aggregating more than $1,000 for ‘luxury goods or services’ incurred by an individual debtor on or within 60 days before the order for relief under this title, or cash advances aggregating more than $1,000 that are extensions of consumer credit under an open end credit plan obtained by an individual debtor on or within 60 days before the order for relief under this title, are presumed to be nondischargeable; ‘luxury goods or services’ do not include goods or services reasonably acquired for the support or maintenance of the debtor or a dependent of the debtor; an extension of consumer credit under an open end credit plan is to be defined for purposes of this subparagraph as it is defined in the Consumer Credit Protection Act;”
Source evidence
Code amendment note
Subsec. (a)(2)(C). Pub. L. 109–8, § 310, amended subpar. (C) generally. Prior to amendment, subpar. (C) read as follows: “for purposes of subparagraph (A) of this paragraph, consumer debts owed to a single creditor and aggregating more than $1,000 for ‘luxury goods or services’ incurred by an individual debtor on or within 60 days before the order for relief under this title, or cash advances aggregating more than $1,000 that are extensions of consumer credit under an open end credit plan obtained by an individual debtor on or within 60 days before the order for relief under this title, are presumed to be nondischargeable; ‘luxury goods or services’ do not include goods or services reasonably acquired for the support or maintenance of the debtor or a dependent of the debtor; an extension of consumer credit under an open end credit plan is to be defined for purposes of this subparagraph as it is defined in the Consumer Credit Protection Act;”.
Enacted provision · exact public law section
SEC. 310. LIMITATION ON LUXURY GOODS. Section 523(a)(2)(C) of title 11, United States Code, is amended to read as follows: “(C) (i) for purposes of subparagraph (A)— “(I) consumer debts owed to a single creditor and aggregating more than $500 for luxury goods or services incurred by an individual debtor on or within 90 days before the order for relief under this title are presumed to be nondischargeable; and “(II) cash advances aggregating more than $750 that are extensions of consumer credit under an open end credit plan obtained by an individual debtor on or within 70 days before the order for relief under this title, are presumed to be nondischargeable; and “(ii) for purposes of this subparagraph— “(I) the terms ‘consumer’, ‘credit’, and ‘open end credit plan’ have the same meanings as in section 103 of the Truth in Lending Act; and “(II) the term ‘luxury goods or services’ does not include goods or services reasonably necessary for the support or maintenance of the debtor or a dependent of the debtor.” .
2005
Pub. L. 109–8 § 215(1)(A) · 119 Stat. 23
1. Added · 11 U.S.C. § 523(a)(5)
  Pub. L. 109–8, § 215(1)(A), added par. (5)
2. Struck · 11 U.S.C. § 523(a)(5)
  Pub. L. 109–8, § 215(1)(A), struck out former par. (5) which read as follows: “to a spouse, former spouse, or child of the debtor, for alimony to, maintenance for, or support of such spouse or child, in connection with a separation agreement, divorce decree or other order of a court of record, determination made in accordance with State or territorial law by a governmental unit, or property settlement agreement, but not to the extent that—
Source evidence
Code amendment note
Subsec. (a)(5). Pub. L. 109–8, § 215(1)(A), added par. (5) and struck out former par. (5) which read as follows: “to a spouse, former spouse, or child of the debtor, for alimony to, maintenance for, or support of such spouse or child, in connection with a separation agreement, divorce decree or other order of a court of record, determination made in accordance with State or territorial law by a governmental unit, or property settlement agreement, but not to the extent that—
“(A) such debt is assigned to another entity, voluntarily, by operation of law, or otherwise (other than debts assigned pursuant to section 408(a)(3) of the Social Security Act, or any such debt which has been assigned to the Federal Government or to a State or any political subdivision of such State); or “(B) such debt includes a liability designated as alimony, maintenance, or support, unless such liability is actually in the nature of alimony, maintenance, or support;”
Enacted provision · exact public law section
(A) by striking paragraph (5) and inserting the following: “(5) for a domestic support obligation;” ; and
2005
Pub. L. 109–8 § 220 · 119 Stat. 23
1. Added · 11 U.S.C. § 523(a)(8)
  Pub. L. 109–8, § 220, added par. (8)
2. Struck · 11 U.S.C. § 523(a)(8)
  Pub. L. 109–8, § 220, struck out former par. (8) which read as follows: “for 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 for an obligation to repay funds received as an educational benefit, scholarship or stipend, unless excepting such debt from discharge under this paragraph will impose an undue hardship on the debtor and the debtor’s dependents;”
Source evidence
Code amendment note
Subsec. (a)(8). Pub. L. 109–8, § 220, added par. (8) and struck out former par. (8) which read as follows: “for 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 for an obligation to repay funds received as an educational benefit, scholarship or stipend, unless excepting such debt from discharge under this paragraph will impose an undue hardship on the debtor and the debtor’s dependents;”.
Enacted provision · exact public law section
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 defined in section 221(d)(1) of the Internal Revenue Code of 1986, incurred by a debtor who is an individual;” .
2005
Pub. L. 109–8 § 1209(2) · 119 Stat. 23
Substituted · 11 U.S.C. § 523(a)(9)
Pub. L. 109–8, § 1209(2), substituted “motor vehicle, vessel, or aircraft” for “motor vehicle”
Source evidence
Code amendment note
Subsec. (a)(9). Pub. L. 109–8, § 1209(2), substituted “motor vehicle, vessel, or aircraft” for “motor vehicle”.
Enacted provision · exact public law section
(2) in subsection (a)(9), by striking “motor vehicle” and inserting “motor vehicle, vessel, or aircraft”; and
2005
Pub. L. 109–8 § 314(a) · 119 Stat. 23
Added · 11 U.S.C. § 523(a)(14A)
Pub. L. 109–8, § 314(a), added par. (14A)
Source evidence
Code amendment note
Subsec. (a)(14A). Pub. L. 109–8, § 314(a), added par. (14A).
Enacted provision · exact public law section
(a) In General.— Section 523(a) of title 11, United States Code, is amended by inserting after paragraph (14) the following: “(14A) incurred to pay a tax to a governmental unit, other than the United States, that would be nondischargeable under paragraph (1);” .
2005
Pub. L. 109–8 § 1235 · 119 Stat. 23
Added · 11 U.S.C. § 523(a)(14B)
Pub. L. 109–8, § 1235, added par. (14B)
Source evidence
Code amendment note
Subsec. (a)(14B). Pub. L. 109–8, § 1235, added par. (14B).
Enacted provision · exact public law section
SEC. 1235. FEDERAL ELECTION LAW FINES AND PENALTIES AS NONDISCHARGEABLE DEBT. Section 523(a) of title 11, United States Code, as amended by section 314, is amended by inserting after paragraph (14A) the following: “(14B) incurred to pay fines or penalties imposed under Federal election law;” .
2005
Pub. L. 109–8 § 412 · 119 Stat. 23
1. Struck · 11 U.S.C. § 523(a)(16)
  Pub. L. 109–8, § 412, struck out “dwelling” after “debtor’s interest in a” and “housing” after “share of a cooperative”
2. Substituted · 11 U.S.C. § 523(a)(16)
  Pub. L. 109–8, § 412, substituted “ownership,” for “ownership or” and “or a lot in a homeowners association, for as long as the debtor or the trustee has a legal, equitable, or possessory ownership interest in such unit, such corporation, or such lot,” for “but only if such fee or assessment is payable for a period during which—
Source evidence
Code amendment note
Subsec. (a)(16). Pub. L. 109–8, § 412, struck out “dwelling” after “debtor’s interest in a” and “housing” after “share of a cooperative” and substituted “ownership,” for “ownership or” and “or a lot in a homeowners association, for as long as the debtor or the trustee has a legal, equitable, or possessory ownership interest in such unit, such corporation, or such lot,” for “but only if such fee or assessment is payable for a period during which—
“(A) the debtor physically occupied a dwelling unit in the condominium or cooperative project; or “(B) the debtor rented the dwelling unit to a tenant and received payments from the tenant for such period,”.
Enacted provision · exact public law section
SEC. 412. FEES ARISING FROM CERTAIN OWNERSHIP INTERESTS. Section 523(a)(16) of title 11, United States Code, is amended— (1) by striking “dwelling” the first place it appears; (2) by striking “ownership or” and inserting “ownership,”; (3) by striking “housing” the first place it appears; and (4) by striking “but only” and all that follows through “such period,” and inserting “or a lot in a homeowners association, for as long as the debtor or the trustee has a legal, equitable, or possessory ownership interest in such unit, such corporation, or such lot,”.
2005
Pub. L. 109–8 § 301 · 119 Stat. 23
1. Substituted · 11 U.S.C. § 523(a)(17)
  Pub. L. 109–8, § 301, substituted “on a prisoner by any court” for “by a court”
2. Substituted · 11 U.S.C. § 523(a)(17)
  Pub. L. 109–8, § 301, substituted “subsection (b) or (f)(2) of section 1915” for “section 1915(b) or (f)”
3. Inserted · 11 U.S.C. § 523(a)(17)
  Pub. L. 109–8, § 301, inserted “(or a similar non-Federal law)” after “title 28” in two places
Source evidence
Code amendment note
Subsec. (a)(17). Pub. L. 109–8, § 301, substituted “on a prisoner by any court” for “by a court” and “subsection (b) or (f)(2) of section 1915” for “section 1915(b) or (f)” and inserted “(or a similar non-Federal law)” after “title 28” in two places.
Enacted provision · exact public law section
SEC. 301. TECHNICAL AMENDMENTS. Section 523(a)(17) of title 11, United States Code, is amended— (1) by striking “by a court” and inserting “on a prisoner by any court”; (2) by striking “section 1915(b) or (f)” and inserting “subsection (b) or (f)(2) of section 1915”; and (3) by inserting “(or a similar non-Federal law)” after “title 28” each place it appears.
2005
Pub. L. 109–8 § 224(c) · 119 Stat. 23
Added · 11 U.S.C. § 523(a)(18)
Pub. L. 109–8, § 224(c), added par. (18)
Source evidence
Code amendment note
Subsec. (a)(18). Pub. L. 109–8, § 224(c), added par. (18).
Enacted provision · exact public law section
(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” .
2005
Pub. L. 109–8 § 215(1)(B) · 119 Stat. 23
Struck · 11 U.S.C. § 523(a)(18)
Pub. L. 109–8, § 215(1)(B), struck out par. (18) which read as follows: “owed under State law to a State or municipality that is—
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 109–8, § 215(1)(B), struck out par. (18) which read as follows: “owed under State law to a State or municipality that is—
“(A) in the nature of support, and “(B) enforceable under part D of title IV of the Social Security Act (42 U.S.C. 601 et seq.); or”.
Enacted provision · exact public law section
(B) by striking paragraph (18);
2005
Pub. L. 109–8 § 1404(a) · 119 Stat. 23
Inserted · 11 U.S.C. § 523(a)(19)(B)
Pub. L. 109–8, § 1404(a), inserted “, before, on, or after the date on which the petition was filed,” after “results” in introductory provisions
Source evidence
Code amendment note
Subsec. (a)(19)(B). Pub. L. 109–8, § 1404(a), inserted “, before, on, or after the date on which the petition was filed,” after “results” in introductory provisions.
Enacted provision · exact public law section
(a) Prepetition and Postpetition Effect.— Section 523(a)(19)(B) of title 11, United States Code, is amended by inserting “, before, on, or after the date on which the petition was filed,” after “results”.
2005
Pub. L. 109–8 § 215(2) · 119 Stat. 23
Substituted · 11 U.S.C. § 523(c)(1)
Pub. L. 109–8, § 215(2), substituted “or (6)” for “(6), or (15)” in two places
Source evidence
Code amendment note
Subsec. (c)(1). Pub. L. 109–8, § 215(2), substituted “or (6)” for “(6), or (15)” in two places.
Enacted provision · exact public law section
(2) in subsection (c), by striking “(6), or (15)” each place it appears and inserting “or (6)”; and
2005
Pub. L. 109–8 § 1209(3) · 119 Stat. 23
Substituted · 11 U.S.C. § 523(e)
Pub. L. 109–8, § 1209(3), substituted “an insured” for “a insured”
Source evidence
Code amendment note
Subsec. (e). Pub. L. 109–8, § 1209(3), substituted “an insured” for “a insured”.
Enacted provision · exact public law section
(3) in subsection (e), by striking “a insured” and inserting “an insured”.
2010
Bankruptcy Technical Corrections Act of 2010
Pub. L. 111–327 § 2(a)(18)(A) · 124 Stat. 3557
Substituted · 11 U.S.C. § 523(a)(2)(C)(ii)(II)
Pub. L. 111–327, § 2(a)(18)(A), substituted semicolon for period at end
Source evidence
Code amendment note
Subsec. (a)(2)(C)(ii)(II). Pub. L. 111–327, § 2(a)(18)(A), substituted semicolon for period at end.
Enacted provision · exact public law section
(A) in paragraph (2)(C)(ii)(II) by striking the period at the end and inserting a semicolon, and
2010
Bankruptcy Technical Corrections Act of 2010
Pub. L. 111–327 § 2(a)(18)(B) · 124 Stat. 3557
Substituted · 11 U.S.C. § 523(a)(3)
Pub. L. 111–327, § 2(a)(18)(B), substituted “521(a)(1)” for “521(1)” in introductory provisions
Source evidence
Code amendment note
Subsec. (a)(3). Pub. L. 111–327, § 2(a)(18)(B), substituted “521(a)(1)” for “521(1)” in introductory provisions.
Enacted provision · exact public law section
(B) in paragraph (3) by striking “521(1)” and inserting “521(a)(1)”,
2019
Small Business Reorganization Act of 2019
Pub. L. 116–54 § 4(a)(8) · 133 Stat. 1079
Inserted · 11 U.S.C. § 523(a)
Pub. L. 116–54 inserted “1192” after “1141,” in introductory provisions
Source evidence
Code amendment note
Subsec. (a). Pub. L. 116–54 inserted “1192” after “1141,” in introductory provisions.
Enacted provision · exact public law section
(8) in section 523(a), in the matter preceding paragraph (1), by inserting “1192” after “1141,”;
Effective date note
Amendment by Pub. L. 116–54 effective 180 days after Aug. 23, 2019, see section 5 of Pub. L. 116–54, set out as a note under section 101 of this title.
2023
Abolish Trafficking Reauthorization Act of 2022
Pub. L. 117–347 title II § 201 · 136 Stat. 6199
Added · 11 U.S.C. § 523(a)(20)
Pub. L. 117–347 added par. (20)
Source evidence
Code amendment note
Subsec. (a)(20). Pub. L. 117–347 added par. (20).
Enacted provision · exact public law section
SEC. 201. BANKRUPTCY. Section 523(a) of title 11, United States Code, is amended— (1) in paragraph (18), by striking “or” at the end; (2) in paragraph (19), by striking the period at the end and inserting “; or”; and (3) by inserting after paragraph (19) the following: “(20) for injury to an individual by the debtor relating to a violation of chapter 77 of title 18, including injury caused by an instance in which the debtor knowingly benefitted financially, or by receiving anything of value, from participation in a venture that the debtor knew or should have known engaged in an act in violation of chapter 77 of title 18.” .

79 of 82 references resolved to an enrolled provision · 3 partial

Notes

Historical and Revision Notes

legislative statements

Section 523(a)(1) represents a compromise between the position taken in the House bill and the Senate amendment. Section 523(a)(2) likewise represents a compromise between the position taken in the House bill and the Senate amendment with respect to the false financial statement exception to discharge. In order to clarify that a “renewal of credit” includes a “refinancing of credit”, explicit reference to a refinancing of credit is made in the preamble to section 523(a)(2). A renewal of credit or refinancing of credit that was obtained by a false financial statement within the terms of section 523(a)(2) is nondischargeable. However, each of the provisions of section 523(a)(2) must be proved. Thus, under section 523(a)(2)(A) a creditor must prove that the debt was obtained by false pretenses, a false representation, or actual fraud, other than a statement respecting the debtor’s or an insider’s financial condition. Subparagraph (A) is intended to codify current case law e.g., Neal v. Clark, 95 U.S. 704 (1887) [24 L. Ed. 586], which interprets “fraud” to mean actual or positive fraud rather than fraud implied in law. Subparagraph (A) is mutually exclusive from subparagraph (B). Subparagraph (B) pertains to the so-called false financial statement. In order for the debt to be nondischargeable, the creditor must prove that the debt was obtained by the use of a statement in writing (i) that is materially false; (ii) respecting the debtor’s or an insider’s financial condition; (iii) on which the creditor to whom the debtor is liable for obtaining money, property, services, or credit reasonably relied; (iv) that the debtor caused to be made or published with intent to deceive. Section 523(a)(2)(B)(iv) is not intended to change from present law since the statement that the debtor causes to be made or published with the intent to deceive automatically includes a statement that the debtor actually makes or publishes with an intent to deceive. Section 523(a)(2)(B) is explained in the House report. Under section 523(a)(2)(B)(i) a discharge is barred only as to that portion of a loan with respect to which a false financial statement is materially false.

In many cases, a creditor is required by state law to refinance existing credit on which there has been no default. If the creditor does not forfeit remedies or otherwise rely to his detriment on a false financial statement with respect to existing credit, then an extension, renewal, or refinancing of such credit is nondischargeable only to the extent of the new money advanced; on the other hand, if an existing loan is in default or the creditor otherwise reasonably relies to his detriment on a false financial statement with regard to an existing loan, then the entire debt is nondischargeable under section 523(a)(2)(B). This codifies the reasoning expressed by the second circuit in In re Danns, 558 F.2d 114 (2d Cir. 1977).

Section 523(a)(3) of the House amendment is derived from the Senate amendment. The provision is intended to overrule Birkett v. Columbia Bank, 195 U.S. 345 (1904) [25 S.Ct. 38, 49 L.Ed. 231, 12 Am.Bankr.Rep. 691].

Section 523(a)(4) of the House amendment represents a compromise between the House bill and the Senate amendment.

Section 523(a)(5) is a compromise between the House bill and the Senate amendment. The provision excepts from discharge a debt owed to a spouse, former spouse or child of the debtor, in connection with a separation agreement, divorce decree, or property settlement agreement, for alimony to, maintenance for, or support of such spouse or child but not to the extent that the debt is assigned to another entity. If the debtor has assumed an obligation of the debtor’s spouse to a third party in connection with a separation agreement, property settlement agreement, or divorce proceeding, such debt is dischargeable to the extent that payment of the debt by the debtor is not actually in the nature of alimony, maintenance, or support of debtor’s spouse, former spouse, or child.

Section 523(a)(6) adopts the position taken in the House bill and rejects the alternative suggested in the Senate amendment. The phrase “willful and malicious injury” covers a willful and malicious conversion.

Section 523(a)(7) of the House amendment adopts the position taken in the Senate amendment and rejects the position taken in the House bill. A penalty relating to a tax cannot be nondischargeable unless the tax itself is nondischargeable.

Section 523(a)(8) represents a compromise between the House bill and the Senate amendment regarding educational loans. This provision is broader than current law which is limited to federally insured loans. Only educational loans owing to a governmental unit or a nonprofit institution of higher education are made nondischargeable under this paragraph.

Section 523(b) is new. The section represents a modification of similar provisions contained in the House bill and the Senate amendment.

Section 523(c) of the House amendment adopts the position taken in the Senate amendment.

Section 523(d) represents a compromise between the position taken in the House bill and the Senate amendment on the issue of attorneys’ fees in false financial statement complaints to determine dischargeability. The provision contained in the House bill permitting the court to award damages is eliminated. The court must grant the debtor judgment or a reasonable attorneys’ fee unless the granting of judgment would be clearly inequitable.

Nondischargeable debts: The House amendment retains the basic categories of nondischargeable tax liabilities contained in both bills, but restricts the time limits on certain nondischargeable taxes. Under the amendment, nondischargeable taxes cover taxes entitled to priority under section 507(a)(6) of title 11 and, in the case of individual debtors under chapters 7, 11, or 13, tax liabilities with respect to which no required return had been filed or as to which a late return had been filed if the return became last due, including extensions, within 2 years before the date of the petition or became due after the petition or as to which the debtor made a fraudulent return, entry or invoice or fraudulently attempted to evade or defeat the tax.

In the case of individuals in liquidation under chapter 7 or in reorganization under chapter 11 of title 11, section 1141(d)(2) incorporates by reference the exceptions to discharge continued in section 523. Different rules concerning the discharge of taxes where a partnership or corporation reorganizes under chapter 11, apply under section 1141.

The House amendment also deletes the reduction rule contained in section 523(e) of the Senate amendment. Under that rule, the amount of an otherwise nondischargeable tax liability would be reduced by the amount which a governmental tax authority could have collected from the debtor’s estate if it had filed a timely claim against the estate but which it did not collect because no such claim was filed. This provision is deleted in order not to effectively compel a tax authority to file claim against the estate in “no asset” cases, along with a dischargeability petition. In no-asset cases, therefore, if the tax authority is not potentially penalized by failing to file a claim, the debtor in such cases will have a better opportunity to choose the prepayment forum, bankruptcy court or the Tax Court, in which to litigate his personal liability for a nondischargeable tax.

The House amendment also adopts the Senate amendment provision limiting the nondischargeability of punitive tax penalties, that is, penalties other than those which represent collection of a principal amount of tax liability through the form of a “penalty.” Under the House amendment, tax penalties which are basically punitive in nature are to be nondischargeable only if the penalty is computed by reference to a related tax liability which is nondischargeable or, if the amount of the penalty is not computed by reference to a tax liability, the transaction or event giving rise to the penalty occurred during the 3-year period ending on the date of the petition.

senate report no. 95–989

This section specifies which of the debtor’s debts are not discharged in a bankruptcy case, and certain procedures for effectuating the section. The provision in Bankruptcy Act § 17c [section 35(c) of former title 11] granting the bankruptcy courts jurisdiction to determine dischargeability is deleted as unnecessary, in view of the comprehensive grant of jurisdiction prescribed in proposed 28 U.S.C. 1334(b), which is adequate to cover the full jurisdiction that the bankruptcy courts have today over dischargeability and related issues under Bankruptcy Act § 17c. The Rules of Bankruptcy Procedure will specify, as they do today, who may request determinations of dischargeability, subject, of course, to proposed 11 U.S.C. 523(c), and when such a request may be made. Proposed 11 U.S.C. 350, providing for reopening of cases, provides one possible procedure for a determination of dischargeability and related issues after a case is closed.

Subsection (a) lists nine kinds of debts excepted from discharge. Taxes that are excepted from discharge are set forth in paragraph (1). These include claims against the debtor which receive priority in the second, third and sixth categories (§ 507(a)(3)(B) and (c) and (6)). These categories include taxes for which the tax authority failed to file a claim against the estate or filed its claim late. Whether or not the taxing authority’s claim is secured will also not affect the claim’s nondischargeability if the tax liability in question is otherwise entitled to priority.

Also included in the nondischargeable debts are taxes for which the debtor had not filed a required return as of the petition date, or for which a return had been filed beyond its last permitted due date (§ 523(a)(1)(B)). For this purpose, the date of the tax year to which the return relates is immaterial. The late return rule applies, however, only to the late returns filed within three years before the petition was filed, and to late returns filed after the petition in title 11 was filed. For this purpose, the taxable year in question need not be one or more of the three years immediately preceding the filing of the petition.

Tax claims with respect to which the debtor filed a fraudulent return, entry or invoice, or fraudulently attempted to evade or defeat any tax (§ 523(a)(1)(C)) are included. The date of the taxable year with regard to which the fraud occurred is immaterial.

Also included are tax payments due under an agreement for deferred payment of taxes, which a debtor had entered into with the Internal Revenue Service (or State or local tax authority) before the filing of the petition and which relate to a prepetition tax liability (§ 523(a)(1)(D)) are also nondischargeable. This classification applies only to tax claims which would have received priority under section 507(a) if the taxpayer had filed a title 11 petition on the date on which the deferred payment agreement was entered into. This rule also applies only to installment payments which become due during and after the commencement of the title 11 case. Payments which had become due within one year before the filing of the petition receive sixth priority, and will be nondischargeable under the general rule of section 523(a)(1)(A).

The above categories of nondischargeability apply to customs duties as well as to taxes.

Paragraph (2) provides that as under Bankruptcy Act § 17a(2) [section 35(a)(2) of former title 11], a debt for obtaining money, property, services, or a refinancing extension or renewal of credit by false pretenses, a false representation, or actual fraud, or by use of a statement in writing respecting the debtor’s financial condition that is materially false, on which the creditor reasonably relied, and which the debtor made or published with intent to deceive, is excepted from discharge. This provision is modified only slightly from current section 17a(2). First, “actual fraud” is added as a ground for exception from discharge. Second, the creditor must not only have relied on a false statement in writing, but the reliance must have been reasonable. This codifies case law construing present section 17a(2). Third, the phrase “in any manner whatsoever” that appears in current law after “made or published” is deleted as unnecessary, the word “published” is used in the same sense that it is used in defamation cases.

Unscheduled debts are excepted from discharge under paragraph (3). The provision, derived from section 17a(3) [section 35(a)(3) of former title 11], follows current law, but clarifies some uncertainties generated by the case law construing 17a(3). The debt is excepted from discharge if it was not scheduled in time to permit timely action by the creditor to protect his rights, unless the creditor had notice or actual knowledge of the case.

Paragraph (4) excepts debts for fraud incurred by the debtor while acting in a fiduciary capacity or for defalcation, embezzlement, or misappropriation.

Paragraph (5) provides that debts for willful and malicious conversion or injury by the debtor to another entity or the property of another entity are nondischargeable. Under this paragraph “willful” means deliberate or intentional. To the extent that Tinker v. Colwell, 139 U.S. 473 (1902), held that a less strict standard is intended, and to the extent that other cases have relied on Tinker to apply a “reckless disregard” standard, they are overruled.

Paragraph (6) excepts from discharge debts to a spouse, former spouse, or child of the debtor for alimony to, maintenance for, or support of the spouse or child. This language, in combination with the repeal of section 456(b) of the Social Security Act (42 U.S.C. 656(b)) by section 326 of the bill, will apply to make nondischargeable only alimony, maintenance, or support owed directly to a spouse or dependent. What constitutes alimony, maintenance, or support, will be determined under the bankruptcy law, not State law. Thus, cases such as In re Waller, 494 F.2d 447 (6th Cir. 1974), are overruled, and the result in cases such as Fife v. Fife, 1 Utah 2d 281, 265 P.2d 642 (1952) is followed. The proviso, however, makes nondischargeable any debts resulting from an agreement by the debtor to hold the debtor’s spouse harmless on joint debts, to the extent that the agreement is in payment of alimony, maintenance, or support of the spouse, as determined under bankruptcy law considerations as to whether a particular agreement to pay money to a spouse is actually alimony or a property settlement.

Paragraph (7) makes nondischargeable certain liabilities for penalties including tax penalties if the underlying tax with respect to which the penalty was imposed is also nondischargeable (sec. 523(a)(7)). These latter liabilities cover those which, but are penal in nature, as distinct from so-called “pecuniary loss” penalties which, in the case of taxes, involve basically the collection of a tax under the label of a “penalty.” This provision differs from the bill as introduced, which did not link the nondischarge of a tax penalty with the treatment of the underlying tax. The amended provision reflects the existing position of the Internal Revenue Service as to tax penalties imposed by the Internal Revenue Code (Rev.Rul. 68–574, 1968–2 C.B. 595).

Paragraph (8) follows generally current law and excerpts from discharge student loans until such loans have been due and owing for five years. Such loans include direct student loans as well as insured and guaranteed loans. This provision is intended to be self-executing and the lender or institution is not required to file a complaint to determine the nondischargeability of any student loan.

Paragraph (9) excepts from discharge debts that the debtor owed before a previous bankruptcy case concerning the debtor in which the debtor was denied a discharge other than on the basis of the six-year bar.

Subsection (b) of this section permits discharge in a bankruptcy case of an unscheduled debt from a prior case. This provision is carried over from Bankruptcy Act § 17b [section 35(b) of former title 11]. The result dictated by the subsection would probably not be different if the subsection were not included. It is included nevertheless for clarity.

Subsection (c) requires a creditor who is owed a debt that may be excepted from discharge under paragraph (2), (4), or (5), (false statements, defalcation or larceny misappropriation, or willful and malicious injury) to initiate proceedings in the bankruptcy court for an exception to discharge. If the creditor does not act, the debt is discharged. This provision does not change current law.

Subsection (d) is new. It provides protection to a consumer debtor that dealt honestly with a creditor who sought to have a debt excepted from discharge on the ground of falsity in the incurring of the debt. The debtor may be awarded costs and a reasonable attorney’s fee for the proceeding to determine the dischargeability of a debt under subsection (a)(2), if the court finds that the proceeding was frivolous or not brought by its creditor in good faith.

The purpose of the provision is to discourage creditors from initiating proceedings to obtaining a false financial statement exception to discharge in the hope of obtaining a settlement from an honest debtor anxious to save attorney’s fees. Such practices impair the debtor’s fresh start and are contrary to the spirit of the bankruptcy laws.

house report no. 95–595

Subsection (a) lists eight kinds of debts excepted from discharge. Taxes that are entitled to priority are excepted from discharge under paragraph (1). In addition, taxes with respect to which the debtor made a fraudulent return or willfully attempted to evade or defeat, or with respect to which a return (if required) was not filed or was not filed after the due date and after one year before the bankruptcy case are excepted from discharge. If the taxing authority’s claim has been disallowed, then it would be barred by the more modern rules of collateral estoppel from reasserting that claim against the debtor after the case was closed. See Plumb, The Tax Recommendations of the Commission on the Bankruptcy Laws: Tax Procedures, 88 Harv.L.Rev. 1360, 1388 (1975).

As under Bankruptcy Act § 17a(2) [section 35(a)(2) of former title 11], debt for obtaining money, property, services, or an extension or renewal of credit by false pretenses, a false representation, or actual fraud, or by use of a statement in writing respecting the debtor’s financial condition that is materially false, on which the creditor reasonably relied, and that the debtor made or published with intent to deceive, is excepted from discharge. This provision is modified only slightly from current section 17a(2). First, “actual fraud” is added as a grounds for exception from discharge. Second, the creditor must not only have relied on a false statement in writing, the reliance must have been reasonable. This codifies case law construing this provision. Third, the phrase “in any manner whatsoever” that appears in current law after “made or published” is deleted as unnecessary. The word “published” is used in the same sense that it is used in slander actions.

Paragraph (4) excepts debts for embezzlement or larceny. The deletion of willful and malicious conversion from § 17a(2) of the Bankruptcy Act [section 35(a)(2) of former title 11] is not intended to effect a substantive change. The intent is to include in the category of non-dischargeable debts a conversion under which the debtor willfully and maliciously intends to borrow property for a short period of time with no intent to inflict injury but on which injury is in fact inflicted.

Paragraph (5) excepts from discharge debts to a spouse, former spouse, or child of the debtor for alimony to, maintenance for, or support of, the spouse or child. This language, in combination with the repeal of section 456(b) of the Social Security Act (42 U.S.C. 656(b)) by section 327 of the bill, will apply to make nondischargeable only alimony, maintenance, or support owed directly to a spouse or dependent. See Hearings, pt. 2, at 942. What constitutes alimony, maintenance, or support, will be determined under the bankruptcy laws, not State law. Thus, cases such as In re Waller, 494 F.2d 447 (6th Cir. 1974); Hearings, pt. 3, at 1308–10, are overruled, and the result in cases such as Fife v. Fife, 1 Utah 2d 281, 265 P.2d 642 (1952) is followed. This provision will, however, make nondischargeable any debts resulting from an agreement by the debtor to hold the debtor’s spouse harmless on joint debts, to the extent that the agreement is in payment of alimony, maintenance, or support of the spouse, as determined under bankruptcy law considerations that are similar to considerations of whether a particular agreement to pay money to a spouse is actually alimony or a property settlement. See Hearings, pt. 3, at 1287–1290.

Paragraph (6) excepts debts for willful and malicious injury by the debtor to another person or to the property of another person. Under this paragraph, “willful” means deliberate or intentional. To the extent that Tinker v. Colwell, 193 U.S. 473 (1902) [24 S.Ct. 505, 48 L.Ed. 754, 11 Am.Bankr.Rep. 568], held that a looser standard is intended, and to the extent that other cases have relied on Tinker to apply a “reckless disregard” standard, they are overruled.

Paragraph (7) excepts from discharge a debt for a fine, penalty, or forfeiture payable to and for the benefit of a governmental unit, that is not compensation for actual pecuniary loss.

Paragraph (8) [enacted as (9)] excepts from discharge debts that the debtor owed before a previous bankruptcy case concerning the debtor in which the debtor was denied a discharge other than on the basis of the six-year bar.

Subsection (d) is new. It provides protection to a consumer debtor that dealt honestly with a creditor who sought to have a debt excepted from discharge on grounds of falsity in the incurring of the debt. The debtor is entitled to costs of and a reasonable attorney’s fee for the proceeding to determine the dischargeability of a debt under subsection (a)(2), if the creditor initiated the proceeding and the debt was determined to be dischargeable. The court is permitted to award any actual pecuniary loss that the debtor may have suffered as a result of the proceeding (such as loss of a day’s pay). The purpose of the provision is to discourage creditors from initiating false financial statement exception to discharge actions in the hopes of obtaining a settlement from an honest debtor anxious to save attorney’s fees. Such practices impair the debtor’s fresh start.

Editorial Notes

References in Text

The Internal Revenue Code of 1986, referred to in subsec. (a), is classified generally to Title 26, Internal Revenue Code.

Section 103 of the Truth in Lending Act, referred to in subsec. (a)(2)(C)(ii)(I), is classified to section 1602 of Title 15, Commerce and Trade.

The Bankruptcy Act, referred to in subsecs. (a)(10) and (b), is act July 1, 1898, ch. 541, 30 Stat. 544, which was classified generally to former Title 11. Sections 14c and 17a of the Bankruptcy Act were classified to sections 32(c) and 35(a) of former Title 11.

Section 408(b)(1) of the Employee Retirement Income Security Act of 1974, referred to in subsec. (a)(18)(A), is classified to section 1108(b)(1) of Title 29, Labor.

Section 3(a)(47) of the Securities Exchange Act of 1934, referred to in subsec. (a)(19)(A)(i), is classified to section 78c(a)(47) of Title 15, Commerce and Trade.

Section 439A of the Higher Education Act of 1965, referred to in subsec. (b), was classified to section 1087–3 of Title 20, Education, and was repealed by Pub. L. 95–598, title III, § 317, Nov. 6, 1978, 92 Stat. 2678.

Section 733(g) of the Public Health Service Act, referred to in subsec. (b), was repealed by Pub. L. 95–598, title III, § 327, Nov. 6, 1978, 92 Stat. 2679. A subsec. (g), containing similar provisions, was added to section 733 by Pub. L. 97–35, title XXVII, § 2730, Aug. 13, 1981, 95 Stat. 919. Section 733 was subsequently omitted in the general revision of subchapter V of chapter 6A of Title 42, The Public Health and Welfare, by Pub. L. 102–408, title I, § 102, Oct. 13, 1992, 106 Stat. 1994. See section 292f(g) of Title 42.

Amendments1979–2023 · 13 rounds

2023

Subsec. (a)(20). Pub. L. 117–347 added par. (20).

2019

Subsec. (a). Pub. L. 116–54 inserted “1192” after “1141,” in introductory provisions.

2010

Subsec. (a)(2)(C)(ii)(II). Pub. L. 111–327, § 2(a)(18)(A), substituted semicolon for period at end.

Subsec. (a)(3). Pub. L. 111–327, § 2(a)(18)(B), substituted “521(a)(1)” for “521(1)” in introductory provisions.

2005

Pub. L. 109–8, § 1209(1), transferred par. (15) and inserted it after subsec. (a)(14A). See 1994 Amendments note below.

Pub. L. 109–8, § 215(3), in par. (15), inserted “to a spouse, former spouse, or child of the debtor and” before “not of the kind” and “or” after “court of record,” and substituted a semicolon for “unless—

“(A) the debtor does not have the ability to pay such debt from income or property of the debtor not reasonably necessary to be expended for the maintenance or support of the debtor or a dependent of the debtor and, if the debtor is engaged in a business, for the payment of expenditures necessary for the continuation, preservation, and operation of such business; or

“(B) discharging such debt would result in a benefit to the debtor that outweighs the detrimental consequences to a spouse, former spouse, or child of the debtor;”.

Subsec. (a). Pub. L. 109–8, § 714(2), inserted at end “For purposes of this subsection, the term ‘return’ means a return that satisfies the requirements of applicable nonbankruptcy law (including applicable filing requirements). Such term includes a return prepared pursuant to section 6020(a) of the Internal Revenue Code of 1986, or similar State or local law, or a written stipulation to a judgment or a final order entered by a nonbankruptcy tribunal, but does not include a return made pursuant to section 6020(b) of the Internal Revenue Code of 1986, or a similar State or local law.”

Subsec. (a)(1)(A). Pub. L. 109–8, § 1502(a)(2), substituted “507(a)(3)” for “507(a)(2)”.

Subsec. (a)(1)(B). Pub. L. 109–8, § 714(1)(A), inserted “or equivalent report or notice,” after “a return,” in introductory provisions.

Subsec. (a)(1)(B)(i). Pub. L. 109–8, § 714(1)(B), inserted “or given” after “filed”.

Subsec. (a)(1)(B)(ii). Pub. L. 109–8, § 714(1)(C), inserted “or given” after “filed” and “, report, or notice” after “return”.

Subsec. (a)(2)(C). Pub. L. 109–8, § 310, amended subpar. (C) generally. Prior to amendment, subpar. (C) read as follows: “for purposes of subparagraph (A) of this paragraph, consumer debts owed to a single creditor and aggregating more than $1,000 for ‘luxury goods or services’ incurred by an individual debtor on or within 60 days before the order for relief under this title, or cash advances aggregating more than $1,000 that are extensions of consumer credit under an open end credit plan obtained by an individual debtor on or within 60 days before the order for relief under this title, are presumed to be nondischargeable; ‘luxury goods or services’ do not include goods or services reasonably acquired for the support or maintenance of the debtor or a dependent of the debtor; an extension of consumer credit under an open end credit plan is to be defined for purposes of this subparagraph as it is defined in the Consumer Credit Protection Act;”.

Subsec. (a)(5). Pub. L. 109–8, § 215(1)(A), added par. (5) and struck out former par. (5) which read as follows: “to a spouse, former spouse, or child of the debtor, for alimony to, maintenance for, or support of such spouse or child, in connection with a separation agreement, divorce decree or other order of a court of record, determination made in accordance with State or territorial law by a governmental unit, or property settlement agreement, but not to the extent that—

“(A) such debt is assigned to another entity, voluntarily, by operation of law, or otherwise (other than debts assigned pursuant to section 408(a)(3) of the Social Security Act, or any such debt which has been assigned to the Federal Government or to a State or any political subdivision of such State); or

“(B) such debt includes a liability designated as alimony, maintenance, or support, unless such liability is actually in the nature of alimony, maintenance, or support;”

Subsec. (a)(8). Pub. L. 109–8, § 220, added par. (8) and struck out former par. (8) which read as follows: “for 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 for an obligation to repay funds received as an educational benefit, scholarship or stipend, unless excepting such debt from discharge under this paragraph will impose an undue hardship on the debtor and the debtor’s dependents;”.

Subsec. (a)(9). Pub. L. 109–8, § 1209(2), substituted “motor vehicle, vessel, or aircraft” for “motor vehicle”.

Subsec. (a)(14A). Pub. L. 109–8, § 314(a), added par. (14A).

Subsec. (a)(14B). Pub. L. 109–8, § 1235, added par. (14B).

Subsec. (a)(16). Pub. L. 109–8, § 412, struck out “dwelling” after “debtor’s interest in a” and “housing” after “share of a cooperative” and substituted “ownership,” for “ownership or” and “or a lot in a homeowners association, for as long as the debtor or the trustee has a legal, equitable, or possessory ownership interest in such unit, such corporation, or such lot,” for “but only if such fee or assessment is payable for a period during which—

“(A) the debtor physically occupied a dwelling unit in the condominium or cooperative project; or

“(B) the debtor rented the dwelling unit to a tenant and received payments from the tenant for such period,”.

Subsec. (a)(17). Pub. L. 109–8, § 301, substituted “on a prisoner by any court” for “by a court” and “subsection (b) or (f)(2) of section 1915” for “section 1915(b) or (f)” and inserted “(or a similar non-Federal law)” after “title 28” in two places.

Subsec. (a)(18). Pub. L. 109–8, § 224(c), added par. (18).

Pub. L. 109–8, § 215(1)(B), struck out par. (18) which read as follows: “owed under State law to a State or municipality that is—

“(A) in the nature of support, and

“(B) enforceable under part D of title IV of the Social Security Act (42 U.S.C. 601 et seq.); or”.

Subsec. (a)(19)(B). Pub. L. 109–8, § 1404(a), inserted “, before, on, or after the date on which the petition was filed,” after “results” in introductory provisions.

Subsec. (c)(1). Pub. L. 109–8, § 215(2), substituted “or (6)” for “(6), or (15)” in two places.

Subsec. (e). Pub. L. 109–8, § 1209(3), substituted “an insured” for “a insured”.

2002

Subsec. (a)(19). Pub. L. 107–204 added par. (19).

1998

Subsec. (a)(8). Pub. L. 105–244 substituted “stipend, unless” for “stipend, unless—” and struck out “(B)” before “excepting such debt” and subpar. (A) which read as follows: “such loan, benefit, scholarship, or stipend overpayment first became due more than 7 years (exclusive of any applicable suspension of the repayment period) before the date of the filing of the petition; or”.

1996

Subsec. (a)(5)(A). Pub. L. 104–193, § 374(a)(4), substituted “section 408(a)(3)” for “section 402(a)(26)”.

Subsec. (a)(17). Pub. L. 104–134 added par. (17).

Subsec. (a)(18). Pub. L. 104–193, § 374(a)(1)–(3), added par. (18).

1994

Par. (15). Pub. L. 103–394, § 304(e)[(1)], amended this section by adding par. (15) at the end. See 2005 Amendment note above.

Subsec. (a). Pub. L. 103–394, § 501(d)(13)(A)(i), substituted “1141,” for “1141,,” in introductory provisions.

Subsec. (a)(1)(A). Pub. L. 103–394, § 304(h)(3), substituted “507(a)(8)” for “507(a)(7)”.

Subsec. (a)(2)(C). Pub. L. 103–394, §§ 306, 501(d)(13)(A)(ii), substituted “$1,000 for” for “$500 for”, “60” for “forty” after “incurred by an individual debtor on or within”, and “60” for “twenty” after “obtained by an individual debtor on or within”, and struck out “(15 U.S.C. 1601 et seq.)” after “Protection Act”.

Subsec. (a)(11). Pub. L. 103–322, § 320934(1), struck out “or” after semicolon at end.

Subsec. (a)(12). Pub. L. 103–322, § 320934(2), which directed the substitution of “; or” for a period at end of par. (12), could not be executed because a period did not appear at end.

Subsec. (a)(13). Pub. L. 103–394, § 221(1), substituted semicolon for period at end.

Pub. L. 103–322, § 320934(3), added par. (13).

Subsec. (a)(14). Pub. L. 103–394, § 221(2), added par. (14).

Subsec. (a)(16). Pub. L. 103–394, § 309, added par. (16).

Subsec. (b). Pub. L. 103–394, § 501(d)(13)(B), struck out “(20 U.S.C. 1087–3)” after “Act of 1965” and “(42 U.S.C. 294f)” after “Service Act”.

Subsec. (c)(1). Pub. L. 103–394, § 304(e)(2), substituted “(6), or (15)” for “or (6)” in two places.

Subsec. (e). Pub. L. 103–394, § 501(d)(13)(C), substituted “insured depository institution” for “depository institution or insured credit union”.

1990

Subsec. (a)(8). Pub. L. 101–647, § 3621, substituted “for 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 for an obligation to repay funds received as an educational benefit, scholarship or stipend, unless” for “for an educational 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 a nonprofit institution, unless” in introductory provisions and amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “such loan first became due before five years (exclusive of any applicable suspension of the repayment period) before the date of the filing of the petition; or”.

Subsec. (a)(9). Pub. L. 101–581 and Pub. L. 101–647, § 3102(a), identically amended par. (9) generally. Prior to amendment, par. (9) read as follows: “to any entity, to the extent that such debt arises from a judgment or consent decree entered in a court of record against the debtor wherein liability was incurred by such debtor as a result of the debtor’s operation of a motor vehicle while legally intoxicated under the laws or regulations of any jurisdiction within the United States or its territories wherein such motor vehicle was operated and within which such liability was incurred; or”.

Subsec. (a)(11), (12). Pub. L. 101–647, § 2522(a)(1), added pars. (11) and (12).

Subsec. (c). Pub. L. 101–647, § 2522(a)(3), designated existing provisions as par. (1) and added par. (2).

Subsec. (e). Pub. L. 101–647, § 2522(a)(2), added subsec. (e).

1986

Subsec. (a). Pub. L. 99–554, § 257(n), inserted reference to sections 1228(a) and 1228(b) of this title.

Subsec. (a)(1)(A). Pub. L. 99–554, § 283(j)(1)(A), substituted “507(a)(7)” for “507(a)(6)”.

Subsec. (a)(5). Pub. L. 99–554, § 281, struck out the comma after “decree” and inserted “, determination made in accordance with State or territorial law by a governmental unit,” after “record”.

Subsec. (a)(9), (10). Pub. L. 99–554, § 283(j)(1)(B), redesignated par. (9) relating to debts incurred by persons driving while intoxicated, added by Pub. L. 98–353, as (10).

Subsec. (b). Pub. L. 99–554, § 283(j)(2), substituted “Service” for “Services”.

1984

Subsec. (a)(2). Pub. L. 98–353, § 454(a)(1), in provisions preceding subpar. (A), struck out “obtaining” after “for”, and substituted “refinancing of credit, to the extent obtained” for “refinance of credit,”.

Subsec. (a)(2)(A). Pub. L. 98–353, § 307(a)(1), struck out “or” at end.

Subsec. (a)(2)(B). Pub. L. 98–353, § 307(a)(2), inserted “or” at end.

Subsec. (a)(2)(B)(iii). Pub. L. 98–353, § 454(a)(1)(A), struck out “obtaining” before “such”.

Subsec. (a)(2)(C). Pub. L. 98–353, § 307(a)(3), added subpar. (C).

Subsec. (a)(5). Pub. L. 98–353, § 454(b)(1), inserted “or other order of a court of record” after “divorce decree,” in provisions preceding subpar. (A).

Subsec. (a)(5)(A). Pub. L. 98–353, § 454(b)(2), inserted “, or any such debt which has been assigned to the Federal Government or to a State or any political subdivision of such State”.

Subsec. (a)(8). Pub. L. 98–353, §§ 371(1), 454(a)(2), struck out “of higher education” after “a nonprofit institution of” and struck out “or” at end.

Subsec. (a)(9). Pub. L. 98–353, § 371(2), added the par. (9) relating to debts incurred by persons driving while intoxicated.

Subsec. (c). Pub. L. 98–353, § 454(c), inserted “of a kind” after “debt”.

Subsec. (d). Pub. L. 98–353, § 307(b), substituted “the court shall grant judgment in favor of the debtor for the costs of, and a reasonable attorney’s fee for, the proceeding if the court finds that the position of the creditor was not substantially justified, except that the court shall not award such costs and fees if special circumstances would make the award unjust” for “the court shall grant judgment against such creditor and in favor of the debtor for the costs of, and a reasonable attorney’s fee for, the proceeding to determine dischargeability, unless such granting of judgment would be clearly inequitable”.

1981

Subsec. (a)(5)(A). Pub. L. 97–35 substituted “law, or otherwise (other than debts assigned pursuant to section 402(a)(26) of the Social Security Act);” for “law, or otherwise;”.

1979

Subsec. (a)(8). Pub. L. 96–56 substituted “for an educational 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 a nonprofit institution of higher education” for “to a governmental unit, or a nonprofit institution of higher education, for an educational loan” in the provisions preceding subpar. (A) and inserted “(exclusive of any applicable suspension of the repayment period)” after “before five years” in subpar. (A).

Statutory Notes and Related Subsidiaries

Effective Date of 2019 Amendment

Amendment by Pub. L. 116–54 effective 180 days after Aug. 23, 2019, see section 5 of Pub. L. 116–54, set out as a note under section 101 of this title.

Effective Date of 2005 Amendment

Pub. L. 109–8, title XIV, § 1404(b), Apr. 20, 2005, 119 Stat. 215, provided that: “The amendment made by subsection (a) [amending this section] is effective beginning July 30, 2002.”

Amendment by sections 215, 220, 224(c), 301, 310, 314(a), 412, 714, 1209, 1235, and 1502(a)(2) of Pub. L. 109–8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of this title.

Effective Date of 1998 Amendment

Pub. L. 105–244, title IX, § 971(b), Oct. 7, 1998, 112 Stat. 1837, provided that: “The amendment made by subsection (a) [amending this section] shall apply only with respect to cases commenced under title 11, United States Code, after the date of enactment of this Act [Oct. 7, 1998].”

Effective Date of 1996 Amendment

Pub. L. 104–193, title III, § 374(c), Aug. 22, 1996, 110 Stat. 2256, provided that: “The amendments made by this section [amending this section and section 656 of Title 42, The Public Health and Welfare] shall apply only with respect to cases commenced under title 11 of the United States Code after the date of the enactment of this Act [Aug. 22, 1996].”

For provisions relating to effective date of title III of Pub. L. 104–193, see section 395(a)–(c) of Pub. L. 104–193, set out as a note under section 654 of Title 42, The Public Health and Welfare.

Effective Date of 1994 Amendment

Amendment by Pub. L. 103–394 effective Oct. 22, 1994, and not applicable with respect to cases commenced under this title before Oct. 22, 1994, see section 702 of Pub. L. 103–394, set out as a note under section 101 of this title.

Effective Date of 1990 Amendment

Pub. L. 101–647, title XXXI, § 3104, Nov. 29, 1990, 104 Stat. 4916, provided that:

“(a)
Effective Date.—
This title and the amendments made by this title [amending this section and section 1328 of this title and enacting provisions set out as a note under section 101 of this title] shall take effect on the date of the enactment of this Act [Nov. 29, 1990].
#
“(b)
Application of Amendments.—
The amendments made by this title [amending this section and section 1328 of this title] shall not apply with respect to cases commenced under title 11 of the United States Code before the date of the enactment of this Act.”
#

Amendment by section 3621 of Pub. L. 101–647 effective 180 days after Nov. 29, 1990, see section 3631 of Pub. L. 101–647, set out as an Effective Date note under section 3001 of Title 28, Judiciary and Judicial Procedure.

Pub. L. 101–581, § 4, Nov. 15, 1990, 104 Stat. 2865, provided that:

“(a)
Effective Date.—
This Act and the amendments made by this Act [amending this section and section 1328 of this title and enacting provisions set out as a note under section 101 of this title] shall take effect on the date of the enactment of this Act [Nov. 15, 1990].
#
“(b)
Application of Amendments.—
The amendments made by this Act [amending this section and section 1328 of this title] shall not apply with respect to cases commenced under title 11 of the United States Code before the date of the enactment of this Act.”
#

Effective Date of 1986 Amendment

Amendment by section 257 of Pub. L. 99–554 effective 30 days after Oct. 27, 1986, but not applicable to cases commenced under this title before that date, see section 302(a), (c)(1) of Pub. L. 99–554, set out as a note under section 581 of Title 28, Judiciary and Judicial Procedure.

Amendment by sections 281 and 283 of Pub. L. 99–554 effective 30 days after Oct. 27, 1986, see section 302(a) of Pub. L. 99–554.

Effective Date of 1984 Amendment

Amendment by Pub. L. 98–353 effective with respect to cases filed 90 days after July 10, 1984, see section 552(a) of Pub. L. 98–353, set out as a note under section 101 of this title.

Effective Date of 1981 Amendment

Amendment by Pub. L. 97–35 effective Aug. 13, 1981, see section 2334(c) of Pub. L. 97–35, set out as a note under section 656 of Title 42, The Public Health and Welfare.

Court Rules and Judicial Documents

Adjustment of Dollar Amounts

The dollar amounts specified in this section were adjusted by notices of the Judicial Conference of the United States pursuant to section 104 of this title as follows:

By notice dated Jan. 30, 2025, 90 F.R. 8941, effective Apr. 1, 2025, in subsec. (a)(2)(C)(i)(I), dollar amount “800” was adjusted to “900” and, in subsec. (a)(2)(C)(i)(II), dollar amount “1,100” was adjusted to “1,250”. See notice of the Judicial Conference of the United States set out as a note under section 104 of this title.

By notice dated Jan. 31, 2022, 87 F.R. 6625, effective Apr. 1, 2022, in subsec. (a)(2)(C)(i)(I), dollar amount “725” was adjusted to “800” and, in subsec. (a)(2)(C)(i)(II), dollar amount “1,000” was adjusted to “1,100”.

By notice dated Feb. 5, 2019, 84 F.R. 3488, effective Apr. 1, 2019, in subsec. (a)(2)(C)(i)(I), dollar amount “675” was adjusted to “725” and, in subsec. (a)(2)(C)(i)(II), dollar amount “950” was adjusted to “1,000”.

By notice dated Feb. 16, 2016, 81 F.R. 8748, effective Apr. 1, 2016, in subsec. (a)(2)(C)(i)(I), dollar amount “650” was adjusted to “675” and, in subsec. (a)(2)(C)(i)(II), dollar amount “925” was adjusted to “950”.

By notice dated Feb. 12, 2013, 78 F.R. 12089, effective Apr. 1, 2013, in subsec. (a)(2)(C)(i)(I), dollar amount “600” was adjusted to “650” and, in subsec. (a)(2)(C)(i)(II), dollar amount “875” was adjusted to “925”.

By notice dated Feb. 19, 2010, 75 F.R. 8747, effective Apr. 1, 2010, in subsec. (a)(2)(C)(i)(I), dollar amount “550” was adjusted to “600” and, in subsec. (a)(2)(C)(i)(II), dollar amount “825” was adjusted to “875”.

By notice dated Feb. 7, 2007, 72 F.R. 7082, effective Apr. 1, 2007, in subsec. (a)(2)(C)(i)(I), dollar amount “500” was adjusted to “550” and, in subsec. (a)(2)(C)(i)(II), dollar amount “750” was adjusted to “825”.

[Pub. L. 109–8 amended subsec. (a)(2)(C) generally. See 2005 Amendment note above.]

By notice dated Feb. 18, 2004, 69 F.R. 8482, effective Apr. 1, 2004, in subsec. (a)(2)(C), dollar amount “1,150” was adjusted to “1,225” each time it appeared.

By notice dated Feb. 13, 2001, 66 F.R. 10910, effective Apr. 1, 2001, in subsec. (a)(2)(C), dollar amount “1,075” was adjusted to “1,150” each time it appeared.

By notice dated Feb. 3, 1998, 63 F.R. 7179, effective Apr. 1, 1998, in subsec. (a)(2)(C), dollar amount “1,000” was adjusted to “1,075” each time it appeared.

Credits

1978–2023 · 18 acts

1978Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2590
1979Pub. L. 96–56, § 3, Aug. 14, 1979, 93 Stat. 387
1981Pub. L. 97–35, title XXIII, § 2334(b), Aug. 13, 1981, 95 Stat. 863
1984Pub. L. 98–353, title III, §§ 307, 371, 454, July 10, 1984, 98 Stat. 353, 364, 375
1986Pub. L. 99–554, title II, §§ 257(n), 281, 283(j), Oct. 27, 1986, 100 Stat. 3115–3117
1990Pub. L. 101–581, § 2(a), Nov. 15, 1990, 104 Stat. 2865
1990Pub. L. 101–647, title XXV, § 2522(a), title XXXI, § 3102(a), title XXXVI, § 3621, Nov. 29, 1990, 104 Stat. 4865, 4916, 4964
1994Pub. L. 103–322, title XXXII, § 320934, Sept. 13, 1994, 108 Stat. 2135
1994Pub. L. 103–394, title II, § 221, title III, §§ 304(e), (h)(3), 306, 309, title V, § 501(d)(13), Oct. 22, 1994, 108 Stat. 4129, 4133–4135, 4137, 4145
1996Pub. L. 104–134, title I, § 101[(a)] [title VIII, § 804(b)], Apr. 26, 1996, 110 Stat. 1321, 1321–74
1996renumbered title I, Pub. L. 104–140, § 1(a), May 2, 1996, 110 Stat. 1327
1996Pub. L. 104–193, title III, § 374(a), Aug. 22, 1996, 110 Stat. 2255
1998Pub. L. 105–244, title IX, § 971(a), Oct. 7, 1998, 112 Stat. 1837
2002Pub. L. 107–204, title VIII, § 803, July 30, 2002, 116 Stat. 801
2005Pub. L. 109–8, title II, §§ 215, 220, 224(c), title III, §§ 301, 310, 314(a), title IV, § 412, title VII, § 714, title XII, §§ 1209, 1235, title XIV, § 1404(a), title XV, § 1502(a)(2), Apr. 20, 2005, 119 Stat. 54, 59, 64, 75, 84, 88, 107, 128, 194, 204, 215, 216
2010Pub. L. 111–327, § 2(a)(18), Dec. 22, 2010, 124 Stat. 3559
2019Pub. L. 116–54, § 4(a)(8), Aug. 23, 2019, 133 Stat. 1086
2023Pub. L. 117–347, title II, § 201, Jan. 5, 2023, 136 Stat. 6205.

Show as published

(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2590; Pub. L. 96–56, § 3, Aug. 14, 1979, 93 Stat. 387; Pub. L. 97–35, title XXIII, § 2334(b), Aug. 13, 1981, 95 Stat. 863; Pub. L. 98–353, title III, §§ 307, 371, 454, July 10, 1984, 98 Stat. 353, 364, 375; Pub. L. 99–554, title II, §§ 257(n), 281, 283(j), Oct. 27, 1986, 100 Stat. 3115–3117; Pub. L. 101–581, § 2(a), Nov. 15, 1990, 104 Stat. 2865; Pub. L. 101–647, title XXV, § 2522(a), title XXXI, § 3102(a), title XXXVI, § 3621, Nov. 29, 1990, 104 Stat. 4865, 4916, 4964; Pub. L. 103–322, title XXXII, § 320934, Sept. 13, 1994, 108 Stat. 2135; Pub. L. 103–394, title II, § 221, title III, §§ 304(e), (h)(3), 306, 309, title V, § 501(d)(13), Oct. 22, 1994, 108 Stat. 4129, 4133–4135, 4137, 4145; Pub. L. 104–134, title I, § 101[(a)] [title VIII, § 804(b)], Apr. 26, 1996, 110 Stat. 1321, 1321–74; renumbered title I, Pub. L. 104–140, § 1(a), May 2, 1996, 110 Stat. 1327; Pub. L. 104–193, title III, § 374(a), Aug. 22, 1996, 110 Stat. 2255; Pub. L. 105–244, title IX, § 971(a), Oct. 7, 1998, 112 Stat. 1837; Pub. L. 107–204, title VIII, § 803, July 30, 2002, 116 Stat. 801; Pub. L. 109–8, title II, §§ 215, 220, 224(c), title III, §§ 301, 310, 314(a), title IV, § 412, title VII, § 714, title XII, §§ 1209, 1235, title XIV, § 1404(a), title XV, § 1502(a)(2), Apr. 20, 2005, 119 Stat. 54, 59, 64, 75, 84, 88, 107, 128, 194, 204, 215, 216; Pub. L. 111–327, § 2(a)(18), Dec. 22, 2010, 124 Stat. 3559; Pub. L. 116–54, § 4(a)(8), Aug. 23, 2019, 133 Stat. 1086; Pub. L. 117–347, title II, § 201, Jan. 5, 2023, 136 Stat. 6205.)