Title 11 — Bankruptcy
Chapter 5 — Creditors, the Debtor, and the Estate
§ 524. Effect of discharge
Statutory text
A discharge in a case under this title—
voids any judgment at any time obtained, to the extent that such judgment is a determination of the personal liability of the debtor with respect to any debt discharged under section 727, 944, 1141, 1192, 1228, or 1328 of this title, whether or not discharge of such debt is waived;
operates as an injunction against the commencement or continuation of an action, the employment of process, or an act, to collect, recover or offset any such debt as a personal liability of the debtor, whether or not discharge of such debt is waived; and
operates as an injunction against the commencement or continuation of an action, the employment of process, or an act, to collect or recover from, or offset against, property of the debtor of the kind specified in section 541(a)(2) of this title that is acquired after the commencement of the case, on account of any allowable community claim, except a community claim that is excepted from discharge under section 523, 1192, 1228(a)(1), or 1328(a)(1), or that would be so excepted, determined in accordance with the provisions of sections 523(c) and 523(d) of this title, in a case concerning the debtor’s spouse commenced on the date of the filing of the petition in the case concerning the debtor, whether or not discharge of the debt based on such community claim is waived.
Subsection (a)(3) of this section does not apply if—
the debtor’s spouse is a debtor in a case under this title, or a bankrupt or a debtor in a case under the Bankruptcy Act, commenced within six years of the date of the filing of the petition in the case concerning the debtor; and
the court does not grant the debtor’s spouse a discharge in such case concerning the debtor’s spouse; or
the court would not grant the debtor’s spouse a discharge in a case under chapter 7 of this title concerning such spouse commenced on the date of the filing of the petition in the case concerning the debtor; and
a determination that the court would not so grant such discharge is made by the bankruptcy court within the time and in the manner provided for a determination under section 727 of this title of whether a debtor is granted a discharge.
An agreement between a holder of a claim and the debtor, the consideration for which, in whole or in part, is based on a debt that is dischargeable in a case under this title is enforceable only to any extent enforceable under applicable nonbankruptcy law, whether or not discharge of such debt is waived, only if—
such agreement was made before the granting of the discharge under section 727, 1141, 1192, 1228, or 1328 of this title;
the debtor received the disclosures described in subsection (k) at or before the time at which the debtor signed the agreement;
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 represents a fully informed and voluntary agreement by the debtor;
such agreement does not impose an undue hardship on the debtor or a dependent of the debtor; and
the attorney fully advised the debtor of the legal effect and consequences of—
an agreement of the kind specified in this subsection; and
any default under such an agreement;
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 rescission to the holder of such claim;
the provisions of subsection (d) of this section have been complied with; and
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—
not imposing an undue hardship on the debtor or a dependent of the debtor; and
in the best interest of the debtor.
Subparagraph (A) shall not apply to the extent that such debt is a consumer debt secured by real property.
In a case concerning an individual, when the court has determined whether to grant or not to grant a discharge under section 727, 1141, 1192, 1228, or 1328 of this title, the court may hold a hearing at which the debtor shall appear in person. At any such hearing, the court shall inform the debtor that a discharge has been granted or the reason why a discharge has not been granted. If a discharge has been granted and if the debtor desires to make an agreement of the kind specified in subsection (c) of this section and was not represented by an attorney during the course of negotiating such agreement, then the court shall hold a hearing at which the debtor shall appear in person and at such hearing the court shall—
inform the debtor—
that such an agreement is not required under this title, under nonbankruptcy law, or under any agreement not made in accordance with the provisions of subsection (c) of this section; and
of the legal effect and consequences of—
an agreement of the kind specified in subsection (c) of this section; and
a default under such an agreement; and
determine whether the agreement that the debtor desires to make complies with the requirements of subsection (c)(6) of this section, if the consideration for such agreement is based in whole or in part on a consumer debt that is not secured by real property of the debtor.
Except as provided in subsection (a)(3) of this section, discharge of a debt of the debtor does not affect the liability of any other entity on, or the property of any other entity for, such debt.
Nothing contained in subsection (c) or (d) of this section prevents a debtor from voluntarily repaying any debt.
After notice and hearing, a court that enters an order confirming a plan of reorganization under chapter 11 may issue, in connection with such order, an injunction in accordance with this subsection to supplement the injunctive effect of a discharge under this section.
An injunction may be issued under subparagraph (A) to enjoin entities from taking legal action for the purpose of directly or indirectly collecting, recovering, or receiving payment or recovery with respect to any claim or demand that, under a plan of reorganization, is to be paid in whole or in part by a trust described in paragraph (2)(B)(i), except such legal actions as are expressly allowed by the injunction, the confirmation order, or the plan of reorganization.
Subject to subsection (h), if the requirements of subparagraph (B) are met at the time an injunction described in paragraph (1) is entered, then after entry of such injunction, any proceeding that involves the validity, application, construction, or modification of such injunction, or of this subsection with respect to such injunction, may be commenced only in the district court in which such injunction was entered, and such court shall have exclusive jurisdiction over any such proceeding without regard to the amount in controversy.
The requirements of this subparagraph are that—
the injunction is to be implemented in connection with a trust that, pursuant to the plan of reorganization—
is to assume the liabilities of a debtor which at the time of entry of the order for relief has been named as a defendant in personal injury, wrongful death, or property-damage actions seeking recovery for damages allegedly caused by the presence of, or exposure to, asbestos or asbestos-containing products;
is to be funded in whole or in part by the securities of 1 or more debtors involved in such plan and by the obligation of such debtor or debtors to make future payments, including dividends;
is to own, or by the exercise of rights granted under such plan would be entitled to own if specified contingencies occur, a majority of the voting shares of—
each such debtor;
the parent corporation of each such debtor; or
a subsidiary of each such debtor that is also a debtor; and
is to use its assets or income to pay claims and demands; and
subject to subsection (h), the court determines that—
the debtor is likely to be subject to substantial future demands for payment arising out of the same or similar conduct or events that gave rise to the claims that are addressed by the injunction;
the actual amounts, numbers, and timing of such future demands cannot be determined;
pursuit of such demands outside the procedures prescribed by such plan is likely to threaten the plan’s purpose to deal equitably with claims and future demands;
as part of the process of seeking confirmation of such plan—
the terms of the injunction proposed to be issued under paragraph (1)(A), including any provisions barring actions against third parties pursuant to paragraph (4)(A), are set out in such plan and in any disclosure statement supporting the plan; and
a separate class or classes of the claimants whose claims are to be addressed by a trust described in clause (i) is established and votes, by at least 75 percent of those voting, in favor of the plan; and
subject to subsection (h), pursuant to court orders or otherwise, the trust will operate through mechanisms such as structured, periodic, or supplemental payments, pro rata distributions, matrices, or periodic review of estimates of the numbers and values of present claims and future demands, or other comparable mechanisms, that provide reasonable assurance that the trust will value, and be in a financial position to pay, present claims and future demands that involve similar claims in substantially the same manner.
If the requirements of paragraph (2)(B) are met and the order confirming the plan of reorganization was issued or affirmed by the district court that has jurisdiction over the reorganization case, then after the time for appeal of the order that issues or affirms the plan—
the injunction shall be valid and enforceable and may not be revoked or modified by any court except through appeal in accordance with paragraph (6);
no entity that pursuant to such plan or thereafter becomes a direct or indirect transferee of, or successor to any assets of, a debtor or trust that is the subject of the injunction shall be liable with respect to any claim or demand made against such entity by reason of its becoming such a transferee or successor; and
no entity that pursuant to such plan or thereafter makes a loan to such a debtor or trust or to such a successor or transferee shall, by reason of making the loan, be liable with respect to any claim or demand made against such entity, nor shall any pledge of assets made in connection with such a loan be upset or impaired for that reason;
Subparagraph (A) shall not be construed to—
imply that an entity described in subparagraph (A)(ii) or (iii) would, if this paragraph were not applicable, necessarily be liable to any entity by reason of any of the acts described in subparagraph (A);
relieve any such entity of the duty to comply with, or of liability under, any Federal or State law regarding the making of a fraudulent conveyance in a transaction described in subparagraph (A)(ii) or (iii); or
relieve a debtor of the debtor’s obligation to comply with the terms of the plan of reorganization, or affect the power of the court to exercise its authority under sections 1141 and 1142 to compel the debtor to do so.
Subject to subparagraph (B), an injunction described in paragraph (1) shall be valid and enforceable against all entities that it addresses.
Notwithstanding the provisions of section 524(e), such an injunction may bar any action directed against a third party who is identifiable from the terms of such injunction (by name or as part of an identifiable group) and is alleged to be directly or indirectly liable for the conduct of, claims against, or demands on the debtor to the extent such alleged liability of such third party arises by reason of—
the third party’s ownership of a financial interest in the debtor, a past or present affiliate of the debtor, or a predecessor in interest of the debtor;
the third party’s involvement in the management of the debtor or a predecessor in interest of the debtor, or service as an officer, director or employee of the debtor or a related party;
the third party’s provision of insurance to the debtor or a related party; or
the third party’s involvement in a transaction changing the corporate structure, or in a loan or other financial transaction affecting the financial condition, of the debtor or a related party, including but not limited to—
involvement in providing financing (debt or equity), or advice to an entity involved in such a transaction; or
acquiring or selling a financial interest in an entity as part of such a transaction.
As used in this subparagraph, the term “related party” means—
a past or present affiliate of the debtor;
a predecessor in interest of the debtor; or
any entity that owned a financial interest in—
the debtor;
a past or present affiliate of the debtor; or
a predecessor in interest of the debtor.
Subject to subsection (h), if, under a plan of reorganization, a kind of demand described in such plan is to be paid in whole or in part by a trust described in paragraph (2)(B)(i) in connection with which an injunction described in paragraph (1) is to be implemented, then such injunction shall be valid and enforceable with respect to a demand of such kind made, after such plan is confirmed, against the debtor or debtors involved, or against a third party described in subparagraph (A)(ii), if—
as part of the proceedings leading to issuance of such injunction, the court appoints a legal representative for the purpose of protecting the rights of persons that might subsequently assert demands of such kind, and
the court determines, before entering the order confirming such plan, that identifying such debtor or debtors, or such third party (by name or as part of an identifiable group), in such injunction with respect to such demands for purposes of this subparagraph is fair and equitable with respect to the persons that might subsequently assert such demands, in light of the benefits provided, or to be provided, to such trust on behalf of such debtor or debtors or such third party.
In this subsection, the term “demand” means a demand for payment, present or future, that—
was not a claim during the proceedings leading to the confirmation of a plan of reorganization;
arises out of the same or similar conduct or events that gave rise to the claims addressed by the injunction issued under paragraph (1); and
pursuant to the plan, is to be paid by a trust described in paragraph (2)(B)(i).
Paragraph (3)(A)(i) does not bar an action taken by or at the direction of an appellate court on appeal of an injunction issued under paragraph (1) or of the order of confirmation that relates to the injunction.
This subsection does not affect the operation of section 1144 or the power of the district court to refer a proceeding under section 157 of title 28 or any reference of a proceeding made prior to the date of the enactment of this subsection.
Application to Existing Injunctions.—
For purposes of subsection (g)—
subject to paragraph (2), if an injunction of the kind described in subsection (g)(1)(B) was issued before the date of the enactment of this Act, as part of a plan of reorganization confirmed by an order entered before such date, then the injunction shall be considered to meet the requirements of subsection (g)(2)(B) for purposes of subsection (g)(2)(A), and to satisfy subsection (g)(4)(A)(ii), if—
the court determined at the time the plan was confirmed that the plan was fair and equitable in accordance with the requirements of section 1129(b);
as part of the proceedings leading to issuance of such injunction and confirmation of such plan, the court had appointed a legal representative for the purpose of protecting the rights of persons that might subsequently assert demands described in subsection (g)(4)(B) with respect to such plan; and
such legal representative did not object to confirmation of such plan or issuance of such injunction; and
for purposes of paragraph (1), if a trust described in subsection (g)(2)(B)(i) is subject to a court order on the date of the enactment of this Act staying such trust from settling or paying further claims—
the requirements of subsection (g)(2)(B)(ii)(V) shall not apply with respect to such trust until such stay is lifted or dissolved; and
if such trust meets such requirements on the date such stay is lifted or dissolved, such trust shall be considered to have met such requirements continuously from the date of the enactment of this Act.
The willful failure of a creditor to credit payments received under a plan confirmed under this title, unless the order confirming the plan is revoked, the plan is in default, or the creditor has not received payments required to be made under the plan in the manner required by the plan (including crediting the amounts required under the plan), shall constitute a violation of an injunction under subsection (a)(2) if the act of the creditor to collect and failure to credit payments in the manner required by the plan caused material injury to the debtor.
Subsection (a)(2) does not operate as an injunction against an act by a creditor that is the holder of a secured claim, if—
such creditor retains a security interest in real property that is the principal residence of the debtor;
such act is in the ordinary course of business between the creditor and the debtor; and
such act is limited to seeking or obtaining periodic payments associated with a valid security interest in lieu of pursuit of in rem relief to enforce the lien.
The disclosures required under subsection (c)(2) shall consist of the disclosure statement described in paragraph (3), completed as required in that paragraph, together with the agreement specified in subsection (c), statement, declaration, motion and order described, respectively, in paragraphs (4) through (8), and shall be the only disclosures required in connection with entering into such agreement.
Disclosures made under paragraph (1) shall be made clearly and conspicuously and in writing. The terms “Amount Reaffirmed” and “Annual Percentage Rate” shall be disclosed more conspicuously than other terms, data or information provided in connection with this disclosure, except that the phrases “Before agreeing to reaffirm a debt, review these important disclosures” and “Summary of Reaffirmation Agreement” may be equally conspicuous. Disclosures may be made in a different order and may use terminology different from that set forth in paragraphs (2) through (8), except that the terms “Amount Reaffirmed” and “Annual Percentage Rate” must be used where indicated.
The disclosure statement required under this paragraph shall consist of the following:
The statement: “Part A: Before agreeing to reaffirm a debt, review these important disclosures:”;
Under the heading “Summary of Reaffirmation Agreement”, the statement: “This Summary is made pursuant to the requirements of the Bankruptcy Code”;
The “Amount Reaffirmed”, using that term, which shall be—
the total amount of debt that the debtor agrees to reaffirm by entering into an agreement of the kind specified in subsection (c), and
the total of any fees and costs accrued as of the date of the disclosure statement, related to such total amount.
In conjunction with the disclosure of the “Amount Reaffirmed”, the statements—
“The amount of debt you have agreed to reaffirm”; and
“Your credit agreement may obligate you to pay additional amounts which may come due after the date of this disclosure. Consult your credit agreement.”.
The “Annual Percentage Rate”, using that term, which shall be disclosed as—
if, at the time the petition is filed, the debt is an extension of credit under an open end credit plan, as the terms “credit” and “open end credit plan” are defined in section 103 of the Truth in Lending Act, then—
the annual percentage rate determined under paragraphs (5) and (6) of section 127(b) of the Truth in Lending Act, as applicable, as disclosed to the debtor in the most recent periodic statement prior to entering into an agreement of the kind specified in subsection (c) or, if no such periodic statement has been given to the debtor during the prior 6 months, the annual percentage rate as it would have been so disclosed at the time the disclosure statement is given to the debtor, or to the extent this annual percentage rate is not readily available or not applicable, then
the simple interest rate applicable to the amount reaffirmed as of the date the disclosure statement is given to the debtor, or if different simple interest rates apply to different balances, the simple interest rate applicable to each such balance, identifying the amount of each such balance included in the amount reaffirmed, or
if the entity making the disclosure elects, to disclose the annual percentage rate under subclause (I) and the simple interest rate under subclause (II); or
if, at the time the petition is filed, the debt is an extension of credit other than under an open end credit plan, as the terms “credit” and “open end credit plan” are defined in section 103 of the Truth in Lending Act, then—
the annual percentage rate under section 128(a)(4) of the Truth in Lending Act, as disclosed to the debtor in the most recent disclosure statement given to the debtor prior to the entering into an agreement of the kind specified in subsection (c) with respect to the debt, or, if no such disclosure statement was given to the debtor, the annual percentage rate as it would have been so disclosed at the time the disclosure statement is given to the debtor, or to the extent this annual percentage rate is not readily available or not applicable, then
the simple interest rate applicable to the amount reaffirmed as of the date the disclosure statement is given to the debtor, or if different simple interest rates apply to different balances, the simple interest rate applicable to each such balance, identifying the amount of such balance included in the amount reaffirmed, or
if the entity making the disclosure elects, to disclose the annual percentage rate under (I) and the simple interest rate under (II).
If the underlying debt transaction was disclosed as a variable rate transaction on the most recent disclosure given under the Truth in Lending Act, by stating “The interest rate on your loan may be a variable interest rate which changes from time to time, so that the annual percentage rate disclosed here may be higher or lower.”.
If the debt is secured by a security interest which has not been waived in whole or in part or determined to be void by a final order of the court at the time of the disclosure, by disclosing that a security interest or lien in goods or property is asserted over some or all of the debts the debtor is reaffirming and listing the items and their original purchase price that are subject to the asserted security interest, or if not a purchase-money security interest then listing by items or types and the original amount of the loan.
At the election of the creditor, a statement of the repayment schedule using 1 or a combination of the following—
by making the statement: “Your first payment in the amount of $___ is due on ___ but the future payment amount may be different. Consult your reaffirmation agreement or credit agreement, as applicable.”, and stating the amount of the first payment and the due date of that payment in the places provided;
by making the statement: “Your payment schedule will be:”, and describing the repayment schedule with the number, amount, and due dates or period of payments scheduled to repay the debts reaffirmed to the extent then known by the disclosing party; or
by describing the debtor’s repayment obligations with reasonable specificity to the extent then known by the disclosing party.
The following statement: “Note: When this disclosure refers to what a creditor ‘may’ do, it does not use the word ‘may’ to give the creditor specific permission. The word ‘may’ is used to tell you what might occur if the law permits the creditor to take the action. If you have questions about your reaffirming a debt or what the law requires, consult with the attorney who helped you negotiate this agreement reaffirming a debt. If you don’t have an attorney helping you, the judge will explain the effect of your reaffirming a debt when the hearing on the reaffirmation agreement is held.”.
The following additional statements:
“Reaffirming a debt is a serious financial decision. The law requires you to take certain steps to make sure the decision is in your best interest. If these steps are not completed, the reaffirmation agreement is not effective, even though you have signed it.
“1. Read the disclosures in this Part A carefully. Consider the decision to reaffirm carefully. Then, if you want to reaffirm, sign the reaffirmation agreement in Part B (or you may use a separate agreement you and your creditor agree on).
“2. Complete and sign Part D and be sure you can afford to make the payments you are agreeing to make and have received a copy of the disclosure statement and a completed and signed reaffirmation agreement.
“3. If you were represented by an attorney during the negotiation of your reaffirmation agreement, the attorney must have signed the certification in Part C.
“4. If you were not represented by an attorney during the negotiation of your reaffirmation agreement, you must have completed and signed Part E.
“5. The original of this disclosure must be filed with the court by you or your creditor. If a separate reaffirmation agreement (other than the one in Part B) has been signed, it must be attached.
“6. If you were represented by an attorney during the negotiation of your reaffirmation agreement, your reaffirmation agreement becomes effective upon filing with the court unless the reaffirmation is presumed to be an undue hardship as explained in Part D.
“7. If you were not represented by an attorney during the negotiation of your reaffirmation agreement, it will not be effective unless the court approves it. The court will notify you of the hearing on your reaffirmation agreement. You must attend this hearing in bankruptcy court where the judge will review your reaffirmation agreement. The bankruptcy court must approve your reaffirmation agreement as consistent with your best interests, except that no court approval is required if your reaffirmation agreement is for a consumer debt secured by a mortgage, deed of trust, security deed, or other lien on your real property, like your home.
“Your right to rescind (cancel) your reaffirmation agreement. You may rescind (cancel) your reaffirmation agreement at any time before the bankruptcy court enters a discharge order, or before the expiration of the 60-day period that begins on the date your reaffirmation agreement is filed with the court, whichever occurs later. To rescind (cancel) your reaffirmation agreement, you must notify the creditor that your reaffirmation agreement is rescinded (or canceled).
“What are your obligations if you reaffirm the debt? A reaffirmed debt remains your personal legal obligation. It is not discharged in your bankruptcy case. That means that if you default on your reaffirmed debt after your bankruptcy case is over, your creditor may be able to take your property or your wages. Otherwise, your obligations will be determined by the reaffirmation agreement which may have changed the terms of the original agreement. For example, if you are reaffirming an open end credit agreement, the creditor may be permitted by that agreement or applicable law to change the terms of that agreement in the future under certain conditions.
“Are you required to enter into a reaffirmation agreement by any law? No, you are not required to reaffirm a debt by any law. Only agree to reaffirm a debt if it is in your best interest. Be sure you can afford the payments you agree to make.
“What if your creditor has a security interest or lien? Your bankruptcy discharge does not eliminate any lien on your property. A ‘lien’ is often referred to as a security interest, deed of trust, mortgage or security deed. Even if you do not reaffirm and your personal liability on the debt is discharged, because of the lien your creditor may still have the right to take the property securing the lien if you do not pay the debt or default on it. If the lien is on an item of personal property that is exempt under your State’s law or that the trustee has abandoned, you may be able to redeem the item rather than reaffirm the debt. To redeem, you must make a single payment to the creditor equal to the amount of the allowed secured claim, as agreed by the parties or determined by the court.”.
In the case of a reaffirmation under subsection (m)(2), numbered paragraph 6 in the disclosures required by clause (i) of this subparagraph shall read as follows:
“6. If you were represented by an attorney during the negotiation of your reaffirmation agreement, your reaffirmation agreement becomes effective upon filing with the court.”.
The form of such agreement required under this paragraph shall consist of the following:
“Part B: Reaffirmation Agreement. I (we) agree to reaffirm the debts arising under the credit agreement described below.
“Brief description of credit agreement:
“Description of any changes to the credit agreement made as part of this reaffirmation agreement:
“Signature: Date:
“Borrower:
“Co-borrower, if also reaffirming these debts:
“Accepted by creditor:
“Date of creditor acceptance:”.
The declaration shall consist of the following:
The following certification:
“Part C: Certification by Debtor’s Attorney (If Any).
“I hereby certify that (1) this agreement represents a fully informed and voluntary agreement by the debtor; (2) this agreement does not impose an undue hardship on the debtor or any dependent of the debtor; and (3) I have fully advised the debtor of the legal effect and consequences of this agreement and any default under this agreement.
“Signature of Debtor’s Attorney: Date:”.
If a presumption of undue hardship has been established with respect to such agreement, such certification shall state that, in the opinion of the attorney, the debtor is able to make the payment.
In the case of a reaffirmation agreement under subsection (m)(2), subparagraph (B) is not applicable.
The statement in support of such agreement, which the debtor shall sign and date prior to filing with the court, shall consist of the following:
“Part D: Debtor’s Statement in Support of Reaffirmation Agreement.
“1. I believe this reaffirmation agreement will not impose an undue hardship on my dependents or me. I can afford to make the payments on the reaffirmed debt because my monthly income (take home pay plus any other income received) is $___, and my actual current monthly expenses including monthly payments on post-bankruptcy debt and other reaffirmation agreements total $___, leaving $___ to make the required payments on this reaffirmed debt. I understand that if my income less my monthly expenses does not leave enough to make the payments, this reaffirmation agreement is presumed to be an undue hardship on me and must be reviewed by the court. However, this presumption may be overcome if I explain to the satisfaction of the court how I can afford to make the payments here: ___.
“2. I received a copy of the Reaffirmation Disclosure Statement in Part A and a completed and signed reaffirmation agreement.”.
Where the debtor is represented by an attorney and is reaffirming a debt owed to a creditor defined in section 19(b)(1)(A)(iv) of the Federal Reserve Act, the statement of support of the reaffirmation agreement, which the debtor shall sign and date prior to filing with the court, shall consist of the following:
“I believe this reaffirmation agreement is in my financial interest. I can afford to make the payments on the reaffirmed debt. I received a copy of the Reaffirmation Disclosure Statement in Part A and a completed and signed reaffirmation agreement.”.
The motion that may be used if approval of such agreement by the court is required in order for it to be effective, shall be signed and dated by the movant and shall consist of the following:
“Part E: Motion for Court Approval (To be completed only if the debtor is not represented by an attorney.). I (we), the debtor(s), affirm the following to be true and correct:
“I am not represented by an attorney in connection with this reaffirmation agreement.
“I believe this reaffirmation agreement is in my best interest based on the income and expenses I have disclosed in my Statement in Support of this reaffirmation agreement, and because (provide any additional relevant reasons the court should consider):
“Therefore, I ask the court for an order approving this reaffirmation agreement.”.
The court order, which may be used to approve such agreement, shall consist of the following:
“Court Order: The court grants the debtor’s motion and approves the reaffirmation agreement described above.”.
Notwithstanding any other provision of this title the following shall apply:
A creditor may accept payments from a debtor before and after the filing of an agreement of the kind specified in subsection (c) with the court.
A creditor may accept payments from a debtor under such agreement that the creditor believes in good faith to be effective.
The requirements of subsections (c)(2) and (k) shall be satisfied if disclosures required under those subsections are given in good faith.
Until 60 days after an agreement of the kind specified in subsection (c) is filed with the court (or such additional period as the court, after notice and a hearing and for cause, orders before the expiration of such period), it shall be presumed that such agreement is an undue hardship on the debtor if the debtor’s monthly income less the debtor’s monthly expenses as shown on the debtor’s completed and signed statement in support of such agreement required under subsection (k)(6)(A) is less than the scheduled payments on the reaffirmed debt. This presumption shall be reviewed by the court. The presumption may be rebutted in writing by the debtor if the statement includes an explanation that identifies additional sources of funds to make the payments as agreed upon under the terms of such agreement. If the presumption is not rebutted to the satisfaction of the court, the court may disapprove such agreement. No agreement shall be disapproved without notice and a hearing to the debtor and creditor, and such hearing shall be concluded before the entry of the debtor’s discharge.
This subsection does not apply to reaffirmation agreements where the creditor is a credit union, as defined in section 19(b)(1)(A)(iv) of the Federal Reserve Act.
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.
Pub. L. 95–598 · 92 Stat. 2549
Enacted · 11 U.S.C. § 524
Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2592
Source evidence
Code source credit
Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2592Pub. L. 98–353 title III · 98 Stat. 333
Struck · 11 U.S.C. § 524(a)(2)
Pub. L. 98–353, §§ 308(a), 455, struck out “or from property of the debtor,” before “whether or not discharge”
Substituted · 11 U.S.C. § 524(a)(2)
Pub. L. 98–353, §§ 308(a), 455, substituted “an act” for “any act”
Source evidence
Code amendment note
Subsec. (a)(2). Pub. L. 98–353, §§ 308(a), 455, struck out “or from property of the debtor,” before “whether or not discharge”, and substituted “an act” for “any act”.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).Pub. L. 98–353 § 455 · 98 Stat. 333
Substituted · 11 U.S.C. § 524(a)(3)
Pub. L. 98–353, § 455, substituted “an act” for “any act”
Source evidence
Code amendment note
Subsec. (a)(3). Pub. L. 98–353, § 455, substituted “an act” for “any act”.Enacted provision · exact public law section
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”.Pub. L. 98–353 § 308(b)(1) · 98 Stat. 333
Struck · 11 U.S.C. § 524(c)(2)
Pub. L. 98–353, § 308(b)(1), (3), added par. (2). Former par. (2), which related to situations where the debtor had not rescinded the agreement within 30 days after the agreement became enforceable, was struck out
Source evidence
Code amendment note
Subsec. (c)(2). Pub. L. 98–353, § 308(b)(1), (3), added par. (2). Former par. (2), which related to situations where the debtor had not rescinded the agreement within 30 days after the agreement became enforceable, was struck out.Enacted provision · exact public law section
(1) by striking out paragraph (2),Small Business Secondary Market Improvements Act of 1984
Pub. L. 98–352 § 308(b)(3) · 98 Stat. 329
Redesignated · 11 U.S.C. § 524(c)(3); 11 U.S.C. § 524(c)(4)
Pub. L. 98–352, § 308(b)(3), added pars. (3) and (4). Former pars. (3) and (4) redesignated (5) and (6), respectively
Source evidence
Code amendment note
Subsec. (c)(3), (4). Pub. L. 98–352, § 308(b)(3), added pars. (3) and (4). Former pars. (3) and (4) redesignated (5) and (6), respectively.Pub. L. 98–353 § 308(b)(2) · 98 Stat. 333
Redesignated · 11 U.S.C. § 524(c)(5)
Pub. L. 98–353, § 308(b)(2), redesignated former par. (3) as (5)
Source evidence
Code amendment note
Subsec. (c)(5). Pub. L. 98–353, § 308(b)(2), redesignated former par. (3) as (5).Enacted provision · exact public law section
(2) by redesignating paragraphs (3) and (4) as paragraphs (5) and (6), respectively, andPub. L. 98–353 § 308(b)(2) · 98 Stat. 333
Redesignated · 11 U.S.C. § 524(c)(6)
Pub. L. 98–353, § 308(b)(2), (4), redesignated former par. (4) as (6) and generally amended par. (6), as so redesignated, thereby striking out provisions relating to court approval of such agreements as are entered into in good faith and are in settlement of litigation under section 523 of this title or provide for redemption under section 722 of this title
Source evidence
Code amendment note
Subsec. (c)(6). Pub. L. 98–353, § 308(b)(2), (4), redesignated former par. (4) as (6) and generally amended par. (6), as so redesignated, thereby striking out provisions relating to court approval of such agreements as are entered into in good faith and are in settlement of litigation under section 523 of this title or provide for redemption under section 722 of this title.Enacted provision · exact public law section
(2) by redesignating paragraphs (3) and (4) as paragraphs (5) and (6), respectively, andPub. L. 98–353 § 308(c) · 98 Stat. 333
Substituted · 11 U.S.C. § 524(d)(2)
Pub. L. 98–353, § 308(c), substituted “subsection (c)(6)” for “subsection (c)(4)”
Source evidence
Code amendment note
Subsec. (d)(2). Pub. L. 98–353, § 308(c), substituted “subsection (c)(6)” for “subsection (c)(4)”.Enacted provision · exact public law section
(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)”.Pub. L. 98–353 § 308(d) · 98 Stat. 333
Added · 11 U.S.C. § 524(f)
Pub. L. 98–353, § 308(d), added subsec. (f)
Source evidence
Code amendment note
Subsec. (f). Pub. L. 98–353, § 308(d), added subsec. (f).Enacted provision · exact public law section
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.”.Bankruptcy Judges, United States Trustees, and Family Farmer Bankruptcy Act of 1986
Pub. L. 99–554 § 257 · 100 Stat. 3088
Inserted · 11 U.S.C. § 524(a)(1)
Pub. L. 99–554, § 257(o)(1), inserted reference to section 1228 of this title
Source evidence
Code amendment note
Subsec. (a)(1). Pub. L. 99–554, § 257(o)(1), inserted reference to section 1228 of this title.Enacted provision · exact public law section
SEC. 257. CONFORMING AMENDMENTS. (a) Title 11 of the United States Code is amended in the table of chapters by inserting after the item relating to chapter 11 the following new item: “12. Adjustment of Debts of Family Farmers with Regular Annual Income (b) Section 108 of title 11, United States Code, is amended— (1) in subsection (b) by inserting “1201 or” before “1301”, and (2) in subsection (c)— (A) by striking out “section 1301” and inserting in lieu thereof “section 1201 or 1301”, and (B) by inserting “1201,” after “722,”. (c) Sections 321(a), 329(b)(1)(B), and 1106(a)(5) of title 11, United States Code, are each amended by striking out “or 13” each place it appears and inserting in lieu thereof “, 12, or 13”. (d) Sections 322(a) and 546(a)(1) of title 11, United States Code, are each amended by striking out “or 1302” each place it appears and inserting in lieu thereof “1302, or 1202”. (e) Section 327 of title 11, United States Code, is amended— (1) in subsection (b) by inserting “, 1202,” after “section 721,”, and (2) in subsection (c) by inserting “, 12,” after “section 7”. (f) Section 330(c) of title 11, United States Code, is amended by inserting “12 or” before “13”. (g) Section 346 of title 11, United States Code, is amended— (1) in subsection (b) by inserting “, 12,” after “chapter 7”, (2) in subsection (g)(1)(C) by inserting “or 12” after “chapter 11”, and (3) in subsection (i)(1) by inserting “, 12,” after “chapter 7”. (h) Section 347 of title 11, United States Code, is amended— (1) in subsection (a)— (A) by inserting “, 1226,” after “section 726”, and (B) by inserting “, 12,” after “chapter 7”, and (2) in subsection (b)— (A) by striking out “or 11” and inserting in lieu thereof “, 11, or 12”, and (B) by striking out “or 1173” and inserting in lieu thereof “1173, or 1225”. (i) Section 348 of title 11, United States Code, is amended— (1) in subsection (b)— (A) by striking out “and 1328(a)” and inserting in lieu thereof “1201(a), 1221, and 1228(a)”, and (B) by striking out “or 1307” and inserting in lieu thereof “1307, or 1208”, (2) in subsections (c) and (e) by striking out “or 1307” each place it appears and inserting in lieu thereof “1307, or 1208”, and (3) in subsection (d) by striking out “or 1307” and inserting in lieu thereof “, 1307, or 1208”. (j) Sections 362(c)(2)(C), 365(d)(2), and 502(g) of title 11, United States Code, are each amended by striking out “or 13” each place it appears and inserting in lieu thereof “12, or 13”. (k) Section 363 of title 11, United States Code, is amended— (1) in subsection (c)(1) by striking out “or 1304” and inserting in lieu thereof “1304,1203, or 1204”, and (2) in subsection (1) by striking out “or 13” and inserting in lieu thereof “, 12, or 13”. (l) Section 364(a) of title 11, United States Code, is amended by striking out “or 1304” and inserting in lieu thereof “1304, 1203, or 1204”. (m) Section 365(g) of title 11, United States Code, is amended— (1) in paragraph (1) by striking out “or 13” and inserting in lieu thereof‘Q2, or 13”, and (2) in paragraph (2)— (A) by striking out “or 13” and inserting in lieu thereof “12, or 13”, and (B) by striking out “or 1307” each place it appears and inserting in lieu thereof “, 1307, or 1208”. (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)”. (o) Section 524 of title 11, United States Code, is amended— (1) in subsections (a)(1), (c)(1), and (d) by striking out “or 1328” each place it appears and inserting in lieu thereof “1228, or 1328”, and (2) in subsection (a)(3) by striking out “or 1328(a)(1)” and inserting in lieu thereof “, 1228(a)(1), or 1328(a)(1)”. (p) Section 557(d)(3) of title 11, United States Code, is amended by inserting “1202,” after “1104,”. (q) Section 706 of title 11, United States Code, is amended— (1) in subsection (a)— (A) by striking out “or 1307” and inserting in lieu thereof “, 1307, or 1208” and (B) by striking out “or 13” and inserting in lieu thereof “, 12, or 13”, and (2) in subsection (c) by inserting “12 or” before “13”. (r) Section 726(b) of title 11, United States Code, is amended by inserting “1208,” after “section 1112”. (s) Section 727(a)(9) of title 11, United States Code, is amended by inserting “1228 or” before “1328”. (t) Section 728(a) of title 11, United States Code, is amended by inserting “or 1208” after “section 1112”. (u) Section 1306(a) of title 11, United States Code, is amended— (1) in paragraph (1) by striking out “or 11” and inserting in lieu thereof “, 11, or 12”, and (2) in paragraph (2) by striking out “or 11” and inserting in lieu thereof “, 11, or 12”. (v) Section 1307 of title 11, United States Code, is amended— (1) in subsection (b) by striking out “or 1112” and inserting in lieu thereof“, 1112, or 1208”, (2) in subsection (d) by inserting “or 12” after “chapter 11”, and (3) in subsection (e) by striking out “or 11” and inserting in lieu thereof “, 11, or 12”.Bankruptcy Judges, United States Trustees, and Family Farmer Bankruptcy Act of 1986
Pub. L. 99–554 § 257 · 100 Stat. 3088
Substituted · 11 U.S.C. § 524(a)(3)
Pub. L. 99–554, § 257(o)(2), which directed the substitution of “, 1228(a)(1), or 1328(a)(1)” for “or 1328(a)(1)” was executed by making the substitution for “or 1328(c)(1)” to reflect the probable intent of Congress. See 1994 Amendment note above
Source evidence
Code amendment note
Subsec. (a)(3). Pub. L. 99–554, § 257(o)(2), which directed the substitution of “, 1228(a)(1), or 1328(a)(1)” for “or 1328(a)(1)” was executed by making the substitution for “or 1328(c)(1)” to reflect the probable intent of Congress. See 1994 Amendment note above.Enacted provision · exact public law section
SEC. 257. CONFORMING AMENDMENTS. (a) Title 11 of the United States Code is amended in the table of chapters by inserting after the item relating to chapter 11 the following new item: “12. Adjustment of Debts of Family Farmers with Regular Annual Income (b) Section 108 of title 11, United States Code, is amended— (1) in subsection (b) by inserting “1201 or” before “1301”, and (2) in subsection (c)— (A) by striking out “section 1301” and inserting in lieu thereof “section 1201 or 1301”, and (B) by inserting “1201,” after “722,”. (c) Sections 321(a), 329(b)(1)(B), and 1106(a)(5) of title 11, United States Code, are each amended by striking out “or 13” each place it appears and inserting in lieu thereof “, 12, or 13”. (d) Sections 322(a) and 546(a)(1) of title 11, United States Code, are each amended by striking out “or 1302” each place it appears and inserting in lieu thereof “1302, or 1202”. (e) Section 327 of title 11, United States Code, is amended— (1) in subsection (b) by inserting “, 1202,” after “section 721,”, and (2) in subsection (c) by inserting “, 12,” after “section 7”. (f) Section 330(c) of title 11, United States Code, is amended by inserting “12 or” before “13”. (g) Section 346 of title 11, United States Code, is amended— (1) in subsection (b) by inserting “, 12,” after “chapter 7”, (2) in subsection (g)(1)(C) by inserting “or 12” after “chapter 11”, and (3) in subsection (i)(1) by inserting “, 12,” after “chapter 7”. (h) Section 347 of title 11, United States Code, is amended— (1) in subsection (a)— (A) by inserting “, 1226,” after “section 726”, and (B) by inserting “, 12,” after “chapter 7”, and (2) in subsection (b)— (A) by striking out “or 11” and inserting in lieu thereof “, 11, or 12”, and (B) by striking out “or 1173” and inserting in lieu thereof “1173, or 1225”. (i) Section 348 of title 11, United States Code, is amended— (1) in subsection (b)— (A) by striking out “and 1328(a)” and inserting in lieu thereof “1201(a), 1221, and 1228(a)”, and (B) by striking out “or 1307” and inserting in lieu thereof “1307, or 1208”, (2) in subsections (c) and (e) by striking out “or 1307” each place it appears and inserting in lieu thereof “1307, or 1208”, and (3) in subsection (d) by striking out “or 1307” and inserting in lieu thereof “, 1307, or 1208”. (j) Sections 362(c)(2)(C), 365(d)(2), and 502(g) of title 11, United States Code, are each amended by striking out “or 13” each place it appears and inserting in lieu thereof “12, or 13”. (k) Section 363 of title 11, United States Code, is amended— (1) in subsection (c)(1) by striking out “or 1304” and inserting in lieu thereof “1304,1203, or 1204”, and (2) in subsection (1) by striking out “or 13” and inserting in lieu thereof “, 12, or 13”. (l) Section 364(a) of title 11, United States Code, is amended by striking out “or 1304” and inserting in lieu thereof “1304, 1203, or 1204”. (m) Section 365(g) of title 11, United States Code, is amended— (1) in paragraph (1) by striking out “or 13” and inserting in lieu thereof‘Q2, or 13”, and (2) in paragraph (2)— (A) by striking out “or 13” and inserting in lieu thereof “12, or 13”, and (B) by striking out “or 1307” each place it appears and inserting in lieu thereof “, 1307, or 1208”. (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)”. (o) Section 524 of title 11, United States Code, is amended— (1) in subsections (a)(1), (c)(1), and (d) by striking out “or 1328” each place it appears and inserting in lieu thereof “1228, or 1328”, and (2) in subsection (a)(3) by striking out “or 1328(a)(1)” and inserting in lieu thereof “, 1228(a)(1), or 1328(a)(1)”. (p) Section 557(d)(3) of title 11, United States Code, is amended by inserting “1202,” after “1104,”. (q) Section 706 of title 11, United States Code, is amended— (1) in subsection (a)— (A) by striking out “or 1307” and inserting in lieu thereof “, 1307, or 1208” and (B) by striking out “or 13” and inserting in lieu thereof “, 12, or 13”, and (2) in subsection (c) by inserting “12 or” before “13”. (r) Section 726(b) of title 11, United States Code, is amended by inserting “1208,” after “section 1112”. (s) Section 727(a)(9) of title 11, United States Code, is amended by inserting “1228 or” before “1328”. (t) Section 728(a) of title 11, United States Code, is amended by inserting “or 1208” after “section 1112”. (u) Section 1306(a) of title 11, United States Code, is amended— (1) in paragraph (1) by striking out “or 11” and inserting in lieu thereof “, 11, or 12”, and (2) in paragraph (2) by striking out “or 11” and inserting in lieu thereof “, 11, or 12”. (v) Section 1307 of title 11, United States Code, is amended— (1) in subsection (b) by striking out “or 1112” and inserting in lieu thereof“, 1112, or 1208”, (2) in subsection (d) by inserting “or 12” after “chapter 11”, and (3) in subsection (e) by striking out “or 11” and inserting in lieu thereof “, 11, or 12”.Bankruptcy Judges, United States Trustees, and Family Farmer Bankruptcy Act of 1986
Pub. L. 99–554 § 257 · 100 Stat. 3088
Inserted · 11 U.S.C. § 524(c)(1)
Pub. L. 99–554, § 257(o)(1), inserted reference to section 1228 of this title
Source evidence
Code amendment note
Subsec. (c)(1). Pub. L. 99–554, § 257(o)(1), inserted reference to section 1228 of this title.Enacted provision · exact public law section
SEC. 257. CONFORMING AMENDMENTS. (a) Title 11 of the United States Code is amended in the table of chapters by inserting after the item relating to chapter 11 the following new item: “12. Adjustment of Debts of Family Farmers with Regular Annual Income (b) Section 108 of title 11, United States Code, is amended— (1) in subsection (b) by inserting “1201 or” before “1301”, and (2) in subsection (c)— (A) by striking out “section 1301” and inserting in lieu thereof “section 1201 or 1301”, and (B) by inserting “1201,” after “722,”. (c) Sections 321(a), 329(b)(1)(B), and 1106(a)(5) of title 11, United States Code, are each amended by striking out “or 13” each place it appears and inserting in lieu thereof “, 12, or 13”. (d) Sections 322(a) and 546(a)(1) of title 11, United States Code, are each amended by striking out “or 1302” each place it appears and inserting in lieu thereof “1302, or 1202”. (e) Section 327 of title 11, United States Code, is amended— (1) in subsection (b) by inserting “, 1202,” after “section 721,”, and (2) in subsection (c) by inserting “, 12,” after “section 7”. (f) Section 330(c) of title 11, United States Code, is amended by inserting “12 or” before “13”. (g) Section 346 of title 11, United States Code, is amended— (1) in subsection (b) by inserting “, 12,” after “chapter 7”, (2) in subsection (g)(1)(C) by inserting “or 12” after “chapter 11”, and (3) in subsection (i)(1) by inserting “, 12,” after “chapter 7”. (h) Section 347 of title 11, United States Code, is amended— (1) in subsection (a)— (A) by inserting “, 1226,” after “section 726”, and (B) by inserting “, 12,” after “chapter 7”, and (2) in subsection (b)— (A) by striking out “or 11” and inserting in lieu thereof “, 11, or 12”, and (B) by striking out “or 1173” and inserting in lieu thereof “1173, or 1225”. (i) Section 348 of title 11, United States Code, is amended— (1) in subsection (b)— (A) by striking out “and 1328(a)” and inserting in lieu thereof “1201(a), 1221, and 1228(a)”, and (B) by striking out “or 1307” and inserting in lieu thereof “1307, or 1208”, (2) in subsections (c) and (e) by striking out “or 1307” each place it appears and inserting in lieu thereof “1307, or 1208”, and (3) in subsection (d) by striking out “or 1307” and inserting in lieu thereof “, 1307, or 1208”. (j) Sections 362(c)(2)(C), 365(d)(2), and 502(g) of title 11, United States Code, are each amended by striking out “or 13” each place it appears and inserting in lieu thereof “12, or 13”. (k) Section 363 of title 11, United States Code, is amended— (1) in subsection (c)(1) by striking out “or 1304” and inserting in lieu thereof “1304,1203, or 1204”, and (2) in subsection (1) by striking out “or 13” and inserting in lieu thereof “, 12, or 13”. (l) Section 364(a) of title 11, United States Code, is amended by striking out “or 1304” and inserting in lieu thereof “1304, 1203, or 1204”. (m) Section 365(g) of title 11, United States Code, is amended— (1) in paragraph (1) by striking out “or 13” and inserting in lieu thereof‘Q2, or 13”, and (2) in paragraph (2)— (A) by striking out “or 13” and inserting in lieu thereof “12, or 13”, and (B) by striking out “or 1307” each place it appears and inserting in lieu thereof “, 1307, or 1208”. (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)”. (o) Section 524 of title 11, United States Code, is amended— (1) in subsections (a)(1), (c)(1), and (d) by striking out “or 1328” each place it appears and inserting in lieu thereof “1228, or 1328”, and (2) in subsection (a)(3) by striking out “or 1328(a)(1)” and inserting in lieu thereof “, 1228(a)(1), or 1328(a)(1)”. (p) Section 557(d)(3) of title 11, United States Code, is amended by inserting “1202,” after “1104,”. (q) Section 706 of title 11, United States Code, is amended— (1) in subsection (a)— (A) by striking out “or 1307” and inserting in lieu thereof “, 1307, or 1208” and (B) by striking out “or 13” and inserting in lieu thereof “, 12, or 13”, and (2) in subsection (c) by inserting “12 or” before “13”. (r) Section 726(b) of title 11, United States Code, is amended by inserting “1208,” after “section 1112”. (s) Section 727(a)(9) of title 11, United States Code, is amended by inserting “1228 or” before “1328”. (t) Section 728(a) of title 11, United States Code, is amended by inserting “or 1208” after “section 1112”. (u) Section 1306(a) of title 11, United States Code, is amended— (1) in paragraph (1) by striking out “or 11” and inserting in lieu thereof “, 11, or 12”, and (2) in paragraph (2) by striking out “or 11” and inserting in lieu thereof “, 11, or 12”. (v) Section 1307 of title 11, United States Code, is amended— (1) in subsection (b) by striking out “or 1112” and inserting in lieu thereof“, 1112, or 1208”, (2) in subsection (d) by inserting “or 12” after “chapter 11”, and (3) in subsection (e) by striking out “or 11” and inserting in lieu thereof “, 11, or 12”.Bankruptcy Judges, United States Trustees, and Family Farmer Bankruptcy Act of 1986
Pub. L. 99–554 § 257 · 100 Stat. 3088
Inserted · 11 U.S.C. § 524(d)
Pub. L. 99–554, § 257(o)(1), inserted reference to section 1228 of this title
Source evidence
Code amendment note
Subsec. (d). Pub. L. 99–554, § 257(o)(1), inserted reference to section 1228 of this title.Enacted provision · exact public law section
SEC. 257. CONFORMING AMENDMENTS. (a) Title 11 of the United States Code is amended in the table of chapters by inserting after the item relating to chapter 11 the following new item: “12. Adjustment of Debts of Family Farmers with Regular Annual Income (b) Section 108 of title 11, United States Code, is amended— (1) in subsection (b) by inserting “1201 or” before “1301”, and (2) in subsection (c)— (A) by striking out “section 1301” and inserting in lieu thereof “section 1201 or 1301”, and (B) by inserting “1201,” after “722,”. (c) Sections 321(a), 329(b)(1)(B), and 1106(a)(5) of title 11, United States Code, are each amended by striking out “or 13” each place it appears and inserting in lieu thereof “, 12, or 13”. (d) Sections 322(a) and 546(a)(1) of title 11, United States Code, are each amended by striking out “or 1302” each place it appears and inserting in lieu thereof “1302, or 1202”. (e) Section 327 of title 11, United States Code, is amended— (1) in subsection (b) by inserting “, 1202,” after “section 721,”, and (2) in subsection (c) by inserting “, 12,” after “section 7”. (f) Section 330(c) of title 11, United States Code, is amended by inserting “12 or” before “13”. (g) Section 346 of title 11, United States Code, is amended— (1) in subsection (b) by inserting “, 12,” after “chapter 7”, (2) in subsection (g)(1)(C) by inserting “or 12” after “chapter 11”, and (3) in subsection (i)(1) by inserting “, 12,” after “chapter 7”. (h) Section 347 of title 11, United States Code, is amended— (1) in subsection (a)— (A) by inserting “, 1226,” after “section 726”, and (B) by inserting “, 12,” after “chapter 7”, and (2) in subsection (b)— (A) by striking out “or 11” and inserting in lieu thereof “, 11, or 12”, and (B) by striking out “or 1173” and inserting in lieu thereof “1173, or 1225”. (i) Section 348 of title 11, United States Code, is amended— (1) in subsection (b)— (A) by striking out “and 1328(a)” and inserting in lieu thereof “1201(a), 1221, and 1228(a)”, and (B) by striking out “or 1307” and inserting in lieu thereof “1307, or 1208”, (2) in subsections (c) and (e) by striking out “or 1307” each place it appears and inserting in lieu thereof “1307, or 1208”, and (3) in subsection (d) by striking out “or 1307” and inserting in lieu thereof “, 1307, or 1208”. (j) Sections 362(c)(2)(C), 365(d)(2), and 502(g) of title 11, United States Code, are each amended by striking out “or 13” each place it appears and inserting in lieu thereof “12, or 13”. (k) Section 363 of title 11, United States Code, is amended— (1) in subsection (c)(1) by striking out “or 1304” and inserting in lieu thereof “1304,1203, or 1204”, and (2) in subsection (1) by striking out “or 13” and inserting in lieu thereof “, 12, or 13”. (l) Section 364(a) of title 11, United States Code, is amended by striking out “or 1304” and inserting in lieu thereof “1304, 1203, or 1204”. (m) Section 365(g) of title 11, United States Code, is amended— (1) in paragraph (1) by striking out “or 13” and inserting in lieu thereof‘Q2, or 13”, and (2) in paragraph (2)— (A) by striking out “or 13” and inserting in lieu thereof “12, or 13”, and (B) by striking out “or 1307” each place it appears and inserting in lieu thereof “, 1307, or 1208”. (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)”. (o) Section 524 of title 11, United States Code, is amended— (1) in subsections (a)(1), (c)(1), and (d) by striking out “or 1328” each place it appears and inserting in lieu thereof “1228, or 1328”, and (2) in subsection (a)(3) by striking out “or 1328(a)(1)” and inserting in lieu thereof “, 1228(a)(1), or 1328(a)(1)”. (p) Section 557(d)(3) of title 11, United States Code, is amended by inserting “1202,” after “1104,”. (q) Section 706 of title 11, United States Code, is amended— (1) in subsection (a)— (A) by striking out “or 1307” and inserting in lieu thereof “, 1307, or 1208” and (B) by striking out “or 13” and inserting in lieu thereof “, 12, or 13”, and (2) in subsection (c) by inserting “12 or” before “13”. (r) Section 726(b) of title 11, United States Code, is amended by inserting “1208,” after “section 1112”. (s) Section 727(a)(9) of title 11, United States Code, is amended by inserting “1228 or” before “1328”. (t) Section 728(a) of title 11, United States Code, is amended by inserting “or 1208” after “section 1112”. (u) Section 1306(a) of title 11, United States Code, is amended— (1) in paragraph (1) by striking out “or 11” and inserting in lieu thereof “, 11, or 12”, and (2) in paragraph (2) by striking out “or 11” and inserting in lieu thereof “, 11, or 12”. (v) Section 1307 of title 11, United States Code, is amended— (1) in subsection (b) by striking out “or 1112” and inserting in lieu thereof“, 1112, or 1208”, (2) in subsection (d) by inserting “or 12” after “chapter 11”, and (3) in subsection (e) by striking out “or 11” and inserting in lieu thereof “, 11, or 12”.Bankruptcy Judges, United States Trustees, and Family Farmer Bankruptcy Act of 1986
Pub. L. 99–554 § 282 · 100 Stat. 3088
Substituted · 11 U.S.C. § 524(d)
Pub. L. 99–554, § 282, substituted “shall” for “may” before “hold” in first sentence
Inserted · 11 U.S.C. § 524(d)
Pub. L. 99–554, § 282, inserted “any” after “At” in second sentence
Inserted · 11 U.S.C. § 524(d)
Pub. L. 99–554, § 282, inserted “the court shall hold a hearing at which the debtor shall appear in person and” after “then” in third sentence
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 99–554, § 282, substituted “shall” for “may” before “hold” in first sentence, inserted “any” after “At” in second sentence, and inserted “the court shall hold a hearing at which the debtor shall appear in person and” after “then” in third sentence.Enacted provision · exact public law section
SEC. 282. DISCHARGE. Section 524(d) of title 11, United States Code is amended— (1) in the first sentence by striking out “shall” the first place it appears and inserting in lieu thereof “may”, (2) in the second sentence by inserting “any” after “At”, and (3) in the third sentence by inserting “the court shall hold a hearing at which the debtor shall appear in person and” after “then”.Bankruptcy Judges, United States Trustees, and Family Farmer Bankruptcy Act of 1986
Pub. L. 99–554 § 283(k) · 100 Stat. 3088
Substituted · 11 U.S.C. § 524(d)(2)
Pub. L. 99–554, § 283(k), substituted “section” for “subsection” after “subsection (c)(6) of this”
Source evidence
Code amendment note
Subsec. (d)(2). Pub. L. 99–554, § 283(k), substituted “section” for “subsection” after “subsection (c)(6) of this”.Enacted provision · exact public law section
(k) Section 524(d)(2) of title 11, United States Code, is amended by striking out “subsection” the second place it appears and inserting in lieu thereof “section”.Bankruptcy Reform Act of 1994
Pub. L. 103–394 § 501(d)(14)(A) · 108 Stat. 4106
Substituted · 11 U.S.C. § 524(a)(3)
Pub. L. 103–394, § 501(d)(14)(A), substituted “1328(a)(1)” for “1328(c)(1)”. See 1986 Amendment note below
Source evidence
Code amendment note
Subsec. (a)(3). Pub. L. 103–394, § 501(d)(14)(A), substituted “1328(a)(1)” for “1328(c)(1)”. See 1986 Amendment note below.Enacted provision · exact public law section
(A) in subsection (a)(3) by striking “1328(c)(1)” and inserting “1328(a)(1)”,Bankruptcy Reform Act of 1994
Pub. L. 103–394 § 103(a)(1) · 108 Stat. 4106
Amended · 11 U.S.C. § 524(c)(2)
Pub. L. 103–394, § 103(a)(1), designated existing provisions as subpar. (A)
Inserted · 11 U.S.C. § 524(c)(2)
Pub. L. 103–394, § 103(a)(1), inserted “and” at end
Added · 11 U.S.C. § 524(c)(2)
Pub. L. 103–394, § 103(a)(1), added subpar. (B)
Source evidence
Code amendment note
Subsec. (c)(2). Pub. L. 103–394, § 103(a)(1), designated existing provisions as subpar. (A), inserted “and” at end, and added subpar. (B).Enacted provision · exact public law section
(1) in paragraph (2)— (A) by inserting “(A)” after “(2)”, (B) by adding “and” at the end, and (C) by inserting after subparagraph (A), as so designated, the following: “(B) such agreement contains a clear and conspicuous statement which advises the debtor that such agreement is not required under this title, under nonbankruptcy law, or under any agreement not in accordance with the provisions of this subsection;”, andBankruptcy Reform Act of 1994
Pub. L. 103–394 § 103(a)(2) · 108 Stat. 4106
Struck · 11 U.S.C. § 524(c)(3)
Pub. L. 103–394, § 103(a)(2), struck out “such agreement” after “which states that” in introductory provisions
Struck · 11 U.S.C. § 524(c)(3)
Pub. L. 103–394, § 103(a)(2), struck out “and” at end of subpar. (A)
Inserted · 11 U.S.C. § 524(c)(3)
Pub. L. 103–394, § 103(a)(2), inserted “such agreement” in subpars. (A) and (B)
Added · 11 U.S.C. § 524(c)(3)
Pub. L. 103–394, § 103(a)(2), added subpar. (C)
Source evidence
Code amendment note
Subsec. (c)(3). Pub. L. 103–394, § 103(a)(2), struck out “such agreement” after “which states that” in introductory provisions, struck out “and” at end of subpar. (A), inserted “such agreement” in subpars. (A) and (B), and added subpar. (C).Enacted provision · exact public law section
(2) in paragraph (3)— (A) in the matter preceding subparagraph (A) by striking “such agreement” the last place it appears, (B) in subparagraph (A)— (i) by inserting “such agreement” after “(A)”, and (ii) by striking “and” at the end, (C) in subparagraph (B)— (i) by inserting “such agreement” after “(B)”, and (ii) by adding “and” at the end, andBankruptcy Reform Act of 1994
Pub. L. 103–394 § 501(d)(14)(B) · 108 Stat. 4106
Substituted · 11 U.S.C. § 524(c)(4)
Pub. L. 103–394, § 501(d)(14)(B), substituted “rescission” for “recission”
Source evidence
Code amendment note
Subsec. (c)(4). Pub. L. 103–394, § 501(d)(14)(B), substituted “rescission” for “recission”.Enacted provision · exact public law section
(B) in subsection (c)(4) by striking “recission” and inserting “rescission”, andBankruptcy Reform Act of 1994
Pub. L. 103–394 § 103(b) · 108 Stat. 4106
Inserted · 11 U.S.C. § 524(d)
Pub. L. 103–394, § 103(b), inserted “and was not represented by an attorney during the course of negotiating such agreement” after “this section” in introductory provisions
Source evidence
Code amendment note
Subsec. (d). Pub. L. 103–394, § 103(b), inserted “and was not represented by an attorney during the course of negotiating such agreement” after “this section” in introductory provisions.Enacted provision · exact public law section
(b) Effect of Discharge.— The third sentence of section 524(d) of title 11, United States Code, is amended in the matter preceding paragraph (1) by inserting “and was not represented by an attorney during the course of negotiating such agreement” after “this section”.Bankruptcy Reform Act of 1994
Pub. L. 103–394 § 501(d)(14)(C) · 108 Stat. 4106
Inserted · 11 U.S.C. § 524(d)(1)(B)(ii)
Pub. L. 103–394, § 501(d)(14)(C), inserted “and” at end
Source evidence
Code amendment note
Subsec. (d)(1)(B)(ii). Pub. L. 103–394, § 501(d)(14)(C), inserted “and” at end.Enacted provision · exact public law section
(C) in subsection (d)(1)(B)(ii) by adding “and” at the end,Bankruptcy Reform Act of 1994
Pub. L. 103–394 § 111(a) · 108 Stat. 4106
Added · 11 U.S.C. § 524(g); 11 U.S.C. § 524(h)
Pub. L. 103–394, § 111(a), added subsecs. (g) and (h)
Source evidence
Code amendment note
Subsecs. (g), (h). Pub. L. 103–394, § 111(a), added subsecs. (g) and (h).Enacted provision · exact public law section
(a) Supplemental Injunctions.— Section 524 of title 11, United States Code, is amended by adding at the end the following: “(g) (1) (A) After notice and hearing, a court that enters an order confirming a plan of reorganization under chapter 11 may issue, in connection with such order, an injunction in accordance with this subsection to supplement the injunctive effect of a discharge under this section. “(B) An injunction may be issued under subparagraph (A) to enjoin entities from taking legal action for the purpose of directly or indirectly collecting, recovering, or receiving payment or recovery with respect to any claim or demand that, under a plan of reorganization, is to be paid in whole or in part by a trust described in paragraph (2)(B)(i), except such legal actions as are expressly allowed by the injunction, the confirmation order, or the plan of reorganization. “(2) (A) Subject to subsection (h), if the requirements of subparagraph (B) are met at the time an injunction described in paragraph (1) is entered, then after entry of such injunction, any proceeding that involves the validity, application, construction, or modification of such injunction, or of this subsection with respect to such injunction, may be commenced only in the district court in which such injunction was entered, and such court shall have exclusive jurisdiction over any such proceeding without regard to the amount in controversy. “(B) The requirements of this subparagraph are that— “(i) the injunction is to be implemented in connection with a trust that, pursuant to the plan of reorganization— “(I) is to assume the liabilities of a debtor which at the time of entry of the order for relief has been named as a defendant in personal injury, wrongful death, or property-damage actions seeking recovery for damages allegedly caused by the presence of, or exposure to, asbestos or asbestos-containing products; “(II) is to be funded in whole or in part by the securities of 1 or more debtors involved in such plan and by the obligation of such debtor or debtors to make future payments, including dividends; “(III) is to own, or by the exercise of rights granted under such plan would be entitled to own if specified contingencies occur, a majority of the voting shares of— “(aa) each such debtor; “(bb) the parent corporation of each such debtor; or “(cc) a subsidiary of each such debtor that is also a debtor; and “(IV) is to use its assets or income to pay claims and demands; and “(ii) subject to subsection (h), the court determines that— “(I) the debtor is likely to be subject to substantial future demands for payment arising out of the same or similar conduct or events that gave rise to the claims that are addressed by the injunction; “(II) the actual amounts, numbers, and timing of such future demands cannot be determined; “(III) pursuit of such demands outside the procedures prescribed by such plan is likely to threaten the plan’s purpose to deal equitably with claims and future demands; “(IV) as part of the process of seeking confirmation of such plan— “(aa) the terms of the injunction proposed to be issued under paragraph (1)(A), including any provisions barring actions against third parties pursuant to paragraph (4)(A), are set out in such plan and in any disclosure statement supporting the plan; and “(bb) a separate class or classes of the claimants whose claims are to be addressed by a trust described in clause (i) is established and votes, by at least 75 percent of those voting, in favor of the plan; and “(V) subject to subsection (h), pursuant to court orders or otherwise, the trust will operate through mechanisms such as structured, periodic, or supplemental payments, pro rata distributions, matrices, or periodic review of estimates of the numbers and values of present claims and future demands, or other comparable mechanisms, that provide reasonable assurance that the trust will value, and be in a financial position to pay, present claims and future demands that involve similar claims in substantially the same manner. “(3) (A) If the requirements of paragraph (2)(B) are met and the order confirming the plan of reorganization was issued or affirmed by the district court that has jurisdiction over the reorga-nization case, then after the time for appeal of the order that issues or affirms the plan— “(i) the injunction shall be valid and enforceable and may not be revoked or modified by any court except through appeal in accordance with paragraph (6); “(ii) no entity that pursuant to such plan or thereafter becomes a direct or indirect transferee of, or successor to any assets of, a debtor or trust that is the subject of the injunction shall be liable with respect to any claim or demand made against such entity by reason of its becoming such a transferee or successor; and “(iii) no entity that pursuant to such plan or thereafter makes a loan to such a debtor or trust or to such a successor or transferee shall, by reason of making the loan, be liable with respect to any claim or demand made against such entity, nor shall any pledge of assets made in connection with such a loan be upset or impaired for that reason; “(B) Subparagraph (A) shall not be construed to— “(i) imply that an entity described in subparagraph (A) (ii) or (iii) would, if this paragraph were not applicable, necessarily be liable to any entity by reason of any of the acts described in subparagraph (A); “(ii) relieve any such entity of the duty to comply with, or of liability under, any Federal or State law regarding the making of a fraudulent conveyance in a transaction described in subparagraph (A) (ii) or (iii); or “(iii) relieve a debtor of the debtor’s obligation to comply with the terms of the plan of reorganization, or affect the power of the court to exercise its authority under sections 1141 and 1142 to compel the debtor to do so. “(4) (A) (i) Subject to subparagraph (B), an injunction described in paragraph (1) shall be valid and enforceable against all entities that it addresses. “(ii) Notwithstanding the provisions of section 524(e), such an injunction may bar any action directed against a third party who is identifiable from the terms of such injunction (by name or as part of an identifiable group) and is alleged to be directly or indirectly liable for the conduct of, claims against, or demands on the debtor to the extent such alleged liability of such third party arises by reason of— “(I) the third party’s ownership of a financial interest in the debtor, a past or present affiliate of the debtor, or a predecessor in interest of the debtor; “(II) the third party’s involvement in the management of the debtor or a predecessor in interest of the debtor, or service as an officer, director or employee of the debtor or a related party; “(III) the third party’s provision of insurance to the debtor or a related party; or “(IV) the third party’s involvement in a transaction changing the corporate structure, or in a loan or other financial transaction affecting the financial condition, of the debtor or a related party, including but not limited to— “(aa) involvement in providing financing (debt or “(bb) acquiring or selling a financial interest in an entity as part of such a transaction. “(iii) As used in this subparagraph, the term ‘related party’ means— “(I) a past or present affiliate of the debtor; “(II) a predecessor in interest of the debtor; or “(III) any entity that owned a financial interest in— “(aa) the debtor; “(bb) a past or present affiliate of the debtor; or “(cc) a predecessor in interest of the debtor. “(B) Subject to subsection (h), if, under a plan of reorganization, a kind of demand described in such plan is to be paid in whole or in part by a trust described in paragraph (2)(B)(i) in connection with which an injunction described in paragraph (1) is to be implemented, then such injunction shall be valid and enforceable with respect to a demand of such kind made, after such plan is confirmed, against the debtor or debtors involved, or against a third party described in subparagraph (A)(ii), if— “(i) as part of the proceedings leading to issuance of such injunction, the court appoints a legal representative for the purpose of protecting the rights of persons that might subsequently assert demands of such kind, and “(ii) the court determines, before entering the order confirming such plan, that identifying such debtor or debtors, or such third party (by name or as part of an identifiable group), in such injunction with respect to such demands for purposes of this subparagraph is fair and equitable with respect to the persons that might subsequently assert such demands, in light of the benefits provided, or to be provided, to such trust on behalf of such debtor or debtors or such third party. “(5) In this subsection, the term ‘demand’ means a demand for payment, present or future, that— “(A) was not a claim during the proceedings leading to the confirmation of a plan of reorganization; “(B) arises out of the same or similar conduct or events that gave rise to the claims addressed by the injunction issued under paragraph (1); and “(C) pursuant to the plan, is to be paid by a trust described in paragraph (2)(B)(i). “(6) Paragraph (3)(A)(i) does not bar an action taken by or at the direction of an appellate court on appeal of an injunction issued under paragraph (1) or of the order of confirmation that relates to the injunction. “(7) This subsection does not affect the operation of section 1144 or the power of the district court to refer a proceeding under section 157 of title 28 or any reference of a proceeding made prior to the date of the enactment of this subsection. “(h) Application to Existing Injunctions.— For purposes of subsection (g)— “(1) subject to paragraph (2), if an injunction of the kind described in subsection (g)(1)(B) was issued before the date of the enactment of this Act, as part of a plan of reorganization confirmed by an order entered before such date, then the injunction shall be considered to meet the requirements of subsection (g)(2)(B) for purposes of subsection (g)(2)(A), and to satisfy subsection (g)(4)(A)(ii), if— “(A) the court determined at the time the plan was confirmed that the plan was fair and equitable in accordance with the requirements of section 1129(b); “(B) as part of the proceedings leading to issuance of such injunction and confirmation of such plan, the court had appointed a legal representative for the purpose of protecting the rights of persons that might subsequently assert demands described in subsection (g)(4)(B) with respect to such plan; and “(C) such legal representative did not object to confirmation of such plan or issuance of such injunction; and “(2) for purposes of paragraph (1), if a trust described in subsection (g)(2)(B)(i) is subject to a court order on the date of the enactment of this Act staying such trust from settling or paying further claims— “(A) the requirements of subsection (g)(2)(B)(ii)(V) shall not apply with respect to such trust until such stay is lifted or dissolved; and “(B) if such trust meets such requirements on the date such stay is lifted or dissolved, such trust shall be considered to have met such requirements continuously from the date of the enactment of this Act.”.Pub. L. 109–8 § 1210 · 119 Stat. 23
Substituted · 11 U.S.C. § 524(a)(3)
Pub. L. 109–8, § 1210, substituted “section 523, 1228(a)(1), or 1328(a)(1), or that” for “section 523, 1228(a)(1), or 1328(a)(1) of this title, or that”
Source evidence
Code amendment note
Subsec. (a)(3). Pub. L. 109–8, § 1210, substituted “section 523, 1228(a)(1), or 1328(a)(1), or that” for “section 523, 1228(a)(1), or 1328(a)(1) of this title, or that”.Enacted provision · exact public law section
SEC. 1210. EFFECT OF DISCHARGE. Section 524(a)(3) of title 11, United States Code, is amended by striking “section 523” and all that follows through “or that” and inserting “section 523, 1228(a)(1), or 1328(a)(1), or that”.Pub. L. 109–8 § 203(a)(1) · 119 Stat. 23
Added · 11 U.S.C. § 524(c)(2)
Pub. L. 109–8, § 203(a)(1), added par. (2)
Struck · 11 U.S.C. § 524(c)(2)
Pub. L. 109–8, § 203(a)(1), struck out former par. (2) which read as follows:
Source evidence
Code amendment note
Subsec. (c)(2). Pub. L. 109–8, § 203(a)(1), added par. (2) and struck out former par. (2) which read as follows:“(2)(A) 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; and “(B) such agreement contains a clear and conspicuous statement which advises the debtor that such agreement is not required under this title, under nonbankruptcy law, or under any agreement not in accordance with the provisions of this subsection;”.
Enacted provision · exact public law section
(1) in subsection (c), by striking paragraph (2) and inserting the following: “(2) the debtor received the disclosures described in subsection (k) at or before the time at which the debtor signed the agreement;” ; andPub. L. 109–8 § 202 · 119 Stat. 23
Added · 11 U.S.C. § 524(i); 11 U.S.C. § 524(j)
Pub. L. 109–8, § 202, added subsecs. (i) and (j)
Source evidence
Code amendment note
Subsecs. (i), (j). Pub. L. 109–8, § 202, added subsecs. (i) and (j).Enacted provision · exact public law section
SEC. 202. EFFECT OF DISCHARGE. Section 524 of title 11, United States Code, is amended by adding at the end the following: “(i) The willful failure of a creditor to credit payments received under a plan confirmed under this title, unless the order confirming the plan is revoked, the plan is in default, or the creditor has not received payments required to be made under the plan in the manner required by the plan (including crediting the amounts required under the plan), shall constitute a violation of an injunction under subsection (a)(2) if the act of the creditor to collect and failure to credit payments in the manner required by the plan caused material injury to the debtor. “(j) Subsection (a)(2) does not operate as an injunction against an act by a creditor that is the holder of a secured claim, if— “(1) such creditor retains a security interest in real property that is the principal residence of the debtor; “(2) such act is in the ordinary course of business between the creditor and the debtor; and “(3) such act is limited to seeking or obtaining periodic payments associated with a valid security interest in lieu of pursuit of in rem relief to enforce the lien.” .Pub. L. 109–8 § 203(a)(2) · 119 Stat. 23
Added · 11 U.S.C. § 524(k)(m)
Pub. L. 109–8, § 203(a)(2), added subsecs. (k) to (m)
Source evidence
Code amendment note
Subsecs. (k) to (m). Pub. L. 109–8, § 203(a)(2), added subsecs. (k) to (m).Enacted provision · exact public law section
(2) by adding at the end the following: “(k) (1) The disclosures required under subsection (c)(2) shall consist of the disclosure statement described in paragraph (3), completed as required in that paragraph, together with the agreement specified in subsection (c), statement, declaration, motion and order described, respectively, in paragraphs (4) through (8), and shall be the only disclosures required in connection with entering into such agreement. “(2) Disclosures made under paragraph (1) shall be made clearly and conspicuously and in writing. The terms ‘Amount Reaffirmed’ and ‘Annual Percentage Rate’ shall be disclosed more conspicuously than other terms, data or information provided in connection with this disclosure, except that the phrases ‘Before agreeing to reaffirm a debt, review these important disclosures’ and ‘Summary of Reaffirmation Agreement’ may be equally conspicuous. Disclosures may be made in a different order and may use terminology different from that set forth in paragraphs (2) through (8), except that the terms ‘Amount Reaffirmed’ and ‘Annual Percentage Rate’ must be used where indicated. “(3) The disclosure statement required under this paragraph shall consist of the following: “(A) The statement: ‘Part A: Before agreeing to reaffirm a debt, review these important disclosures:’; “(B) Under the heading ‘Summary of Reaffirmation Agreement’, the statement: ‘This Summary is made pursuant to the requirements of the Bankruptcy Code’; “(C) The ‘Amount Reaffirmed’, using that term, which shall be— “(i) the total amount of debt that the debtor agrees to reaffirm by entering into an agreement of the kind specified in subsection (c), and “(ii) the total of any fees and costs accrued as of the date of the disclosure statement, related to such total amount. “(D) In conjunction with the disclosure of the ‘Amount Reaffirmed’, the statements— “(i) ‘The amount of debt you have agreed to reaffirm’; and “(ii) ‘Your credit agreement may obligate you to pay additional amounts which may come due after the date of this disclosure. Consult your credit agreement.’. “(E) The ‘Annual Percentage Rate’, using that term, which shall be disclosed as— “(i) if, at the time the petition is filed, the debt is an extension of credit under an open end credit plan, as the terms ‘credit’ and ‘open end credit plan’ are defined in section 103 of the Truth in Lending Act, then— “(I) the annual percentage rate determined under paragraphs (5) and (6) of section 127(b) of the Truth in Lending Act, as applicable, as disclosed to the debtor in the most recent periodic statement prior to entering into an agreement of the kind specified in subsection (c) or, if no such periodic statement has been given to the debtor during the prior 6 months, the annual percentage rate as it would have been so disclosed at the time the disclosure statement is given to the debtor, or to the extent this annual percentage rate is not readily available or not applicable, then “(II) the simple interest rate applicable to the amount reaffirmed as of the date the disclosure statement is given to the debtor, or if different simple interest rates apply to different balances, the simple interest rate applicable to each such balance, identifying the amount of each such balance included in the amount reaffirmed, or “(III) if the entity making the disclosure elects, to disclose the annual percentage rate under subclause (I) and the simple interest rate under subclause (II); or “(ii) if, at the time the petition is filed, the debt is an extension of credit other than under an open end credit plan, as the terms ‘credit’ and ‘open end credit plan’ are defined in section 103 of the Truth in Lending Act, then— “(I) the annual percentage rate under section 128(a)(4) of the Truth in Lending Act, as disclosed to the debtor in the most recent disclosure statement given to the debtor prior to the entering into an agreement of the kind specified in subsection (c) with respect to the debt, or, if no such disclosure statement was given to the debtor, the annual percentage rate as it would have been so disclosed at the time the disclosure statement is given to the debtor, or to the extent this annual percentage rate is not readily available or not applicable, then “(II) the simple interest rate applicable to the amount reaffirmed as of the date the disclosure statement is given to the debtor, or if different simple interest rates apply to different balances, the simple interest rate applicable to each such balance, identifying the amount of such balance included in the amount reaffirmed, or “(III) if the entity making the disclosure elects, to disclose the annual percentage rate under (I) and the simple interest rate under (II). “(F) If the underlying debt transaction was disclosed as a variable rate transaction on the most recent disclosure given under the Truth in Lending Act, by stating ‘The interest rate on your loan may be a variable interest rate which changes from time to time, so that the annual percentage rate disclosed here may be higher or lower.’. “(G) If the debt is secured by a security interest which has not been waived in whole or in part or determined to be void by a final order of the court at the time of the disclosure, by disclosing that a security interest or lien in goods or property is asserted over some or all of the debts the debtor is reaffirming and listing the items and their original purchase price that are subject to the asserted security interest, or if not a purchase-money security interest then listing by items or types and the original amount of the loan. “(H) At the election of the creditor, a statement of the repayment schedule using 1 or a combination of the following— “(i) by making the statement: ‘Your first payment in the amount of $___ is due on ___ but the future payment amount may be different. Consult your reaffirmation agreement or credit agreement, as applicable.’, and stating the amount of the first payment and the due date of that payment in the places provided; “(ii) by making the statement: ‘Your payment schedule will be:’, and describing the repayment schedule with the number, amount, and due dates or period of payments scheduled to repay the debts reaffirmed to the extent then known by the disclosing party; or “(iii) by describing the debtor’s repayment obligations with reasonable specificity to the extent then known by the disclosing party. “(I) The following statement: ‘Note: When this disclosure refers to what a creditor “may” do, it does not use the word “may” to give the creditor specific permission. The word “may” is used to tell you what might occur if the law permits the creditor to take the action. If you have questions about your reaffirming a debt or what the law requires, consult with the attorney who helped you negotiate this agreement reaffirming a debt. If you don’t have an attorney helping you, the judge will explain the effect of your reaffirming a debt when the hearing on the reaffirmation agreement is held.’. “(J) (i) The following additional statements: “ ‘Reaffirming a debt is a serious financial decision. The law requires you to take certain steps to make sure the decision is in your best interest. If these steps are not completed, the reaffirmation agreement is not effective, even though you have signed it. “ ‘1. Read the disclosures in this Part A carefully. Consider the decision to reaffirm carefully. Then, if you want to reaffirm, sign the reaffirmation agreement in Part B (or you may use a separate agreement you and your creditor agree on). “ ‘2. Complete and sign Part D and be sure you can afford to make the payments you are agreeing to make and have received a copy of the disclosure statement and a completed and signed reaffirmation agreement. “ ‘3. If you were represented by an attorney during the negotiation of your reaffirmation agreement, the attorney must have signed the certification in Part C. “ ‘4. If you were not represented by an attorney during the negotiation of your reaffirmation agreement, you must have completed and signed Part E. “ ‘5. The original of this disclosure must be filed with the court by you or your creditor. If a separate reaffirmation agreement (other than the one in Part B) has been signed, it must be attached. “ ‘6. If you were represented by an attorney during the negotiation of your reaffirmation agreement, your reaffirmation agreement becomes effective upon filing with the court unless the reaffirmation is presumed to be an undue hardship as explained in Part D. “ ‘7. If you were not represented by an attorney during the negotiation of your reaffirmation agreement, it will not be effective unless the court approves it. The court will notify you of the hearing on your reaffirmation agreement. You must attend this hearing in bankruptcy court where the judge will review your reaffirmation agreement. The bankruptcy court must approve your reaffirmation agreement as consistent with your best interests, except that no court approval is required if your reaffirmation agreement is for a consumer debt secured by a mortgage, deed of trust, security deed, or other lien on your real property, like your home. “ ‘Your right to rescind (cancel) your reaffirmation agreement. You may rescind (cancel) your reaffirmation agreement at any time before the bankruptcy court enters a discharge order, or before the expiration of the 60-day period that begins on the date your reaffirmation agreement is filed with the court, whichever occurs later. To rescind (cancel) your reaffirmation agreement, you must notify the creditor that your reaffirmation agreement is rescinded (or canceled). “ ‘What are your obligations if you reaffirm the debt? A reaffirmed debt remains your personal legal obligation. It is not discharged in your bankruptcy case. That means that if you default on your reaffirmed debt after your bankruptcy case is over, your creditor may be able to take your property or your wages. Otherwise, your obligations will be determined by the reaffirmation agreement which may have changed the terms of the original agreement. For example, if you are reaffirming an open end credit agreement, the creditor may be permitted by that agreement or applicable law to change the terms of that agreement in the future under certain conditions. “ ‘Are you required to enter into a reaffirmation agreement by any law? No, you are not required to reaffirm a debt by any law. Only agree to reaffirm a debt if it is in your best interest. Be sure you can afford the payments you agree to make. “ ‘What if your creditor has a security interest or lien? Your bankruptcy discharge does not eliminate any lien on your property. A “lien” is often referred to as a security interest, deed of trust, mortgage or security deed. Even if you do not reaffirm and your personal liability on the debt is discharged, because of the lien your creditor may still have the right to take the security property if you do not pay the debt or default on it. If the lien is on an item of personal property that is exempt under your State’s law or that the trustee has abandoned, you may be able to redeem the item rather than reaffirm the debt. To redeem, you make a single payment to the creditor equal to the current value of the security property, as agreed by the parties or determined by the court.’. “(ii) In the case of a reaffirmation under subsection (m)(2), numbered paragraph 6 in the disclosures required by clause (i) of this subparagraph shall read as follows: “ ‘6. Effective date. If you were represented by an attorney during the negotiation of your reaffirmation agreement, your reaffirmation agreement becomes effective upon filing with the court.’. “(4) The form of such agreement required under this paragraph shall consist of the following: “ ‘Part B: Reaffirmation Agreement. I (we) agree to reaffirm the debts arising under the credit agreement described below. “ ‘Brief description of credit agreement: “ ‘Description of any changes to the credit agreement made as part of this reaffirmation agreement: “ ‘Signature: Date: “ ‘Borrower: “ ‘Co-borrower, if also reaffirming these debts: “ ‘Accepted by creditor: “ ‘Date of creditor acceptance:’. “(5) The declaration shall consist of the following: “(A) The following certification: “ ‘Part C: Certification by Debtor’s Attorney (If Any). “ ‘I hereby certify that (1) this agreement represents a fully informed and voluntary agreement by the debtor; (2) this agreement does not impose an undue hardship on the debtor or any dependent of the debtor; and (3) I have fully advised the debtor of the legal effect and consequences of this agreement and any default under this agreement. “ ‘Signature of Debtor’s Attorney: Date:’. “(B) If a presumption of undue hardship has been established with respect to such agreement, such certification shall state that in the opinion of the attorney, the debtor is able to make the payment. “(C) In the case of a reaffirmation agreement under subsection (m)(2), subparagraph (B) is not applicable. “(6) (A) The statement in support of such agreement, which the debtor shall sign and date prior to filing with the court, shall consist of the following: “ ‘Part D: Debtor’s Statement in Support of Reaffirmation Agreement. “ ‘1. I believe this reaffirmation agreement will not impose an undue hardship on my dependents or me. I can afford to make the payments on the reaffirmed debt because my monthly income (take home pay plus any other income received) is $___, and my actual current monthly expenses including monthly payments on post-bankruptcy debt and other reaffirmation agreements total $___, leaving $___ to make the required payments on this reaffirmed debt. I understand that if my income less my monthly expenses does not leave enough to make the payments, this reaffirmation agreement is presumed to be an undue hardship on me and must be reviewed by the court. However, this presumption may be overcome if I explain to the satisfaction of the court how I can afford to make the payments here: ___. “ ‘2. I received a copy of the Reaffirmation Disclosure Statement in Part A and a completed and signed reaffirmation agreement.’. “(B) Where the debtor is represented by an attorney and is reaffirming a debt owed to a creditor defined in section 19(b)(1)(A)(iv) of the Federal Reserve Act, the statement of support of the reaffirmation agreement, which the debtor shall sign and date prior to filing with the court, shall consist of the following: “ ‘I believe this reaffirmation agreement is in my financial interest. I can afford to make the payments on the reaffirmed debt. I received a copy of the Reaffirmation Disclosure Statement in Part A and a completed and signed reaffirmation agreement.’. “(7) The motion that may be used if approval of such agreement by the court is required in order for it to be effective, shall be signed and dated by the movant and shall consist of the following: “ ‘Part E: Motion for Court Approval (To be completed only if the debtor is not represented by an attorney.). I (we), the debtor(s), affirm the following to be true and correct: “ ‘I am not represented by an attorney in connection with this reaffirmation agreement. “ ‘I believe this reaffirmation agreement is in my best interest based on the income and expenses I have disclosed in my Statement in Support of this reaffirmation agreement, and because (provide any additional relevant reasons the court should consider): “ ‘Therefore, I ask the court for an order approving this reaffirmation agreement.’. “(8) The court order, which may be used to approve such agreement, shall consist of the following: “ ‘Court Order: The court grants the debtor’s motion and approves the reaffirmation agreement described above.’. “(l) Applicability. Notwithstanding any other provision of this title the following shall apply: “(1) A creditor may accept payments from a debtor before and after the filing of an agreement of the kind specified in subsection (c) with the court. “(2) A creditor may accept payments from a debtor under such agreement that the creditor believes in good faith to be effective. “(3) The requirements of subsections (c)(2) and (k) shall be satisfied if disclosures required under those subsections are given in good faith. “(m) (1) Until 60 days after an agreement of the kind specified in subsection (c) is filed with the court (or such additional period as the court, after notice and a hearing and for cause, orders before the expiration of such period), it shall be presumed that such agreement is an undue hardship on the debtor if the debtor’s monthly income less the debtor’s monthly expenses as shown on the debtor’s completed and signed statement in support of such agreement required under subsection (k)(6)(A) is less than the scheduled payments on the reaffirmed debt. This presumption shall be reviewed by the court. The presumption may be rebutted in writing by the debtor if the statement includes an explanation that identifies additional sources of funds to make the payments as agreed upon under the terms of such agreement. If the presumption is not rebutted to the satisfaction of the court, the court may disapprove such agreement. No agreement shall be disapproved without notice and a hearing to the debtor and creditor, and such hearing shall be concluded before the entry of the debtor’s discharge. “(2) This subsection does not apply to reaffirmation agreements where the creditor is a credit union, as defined in section 19(b)(1)(A)(iv) of the Federal Reserve Act.” .Bankruptcy Technical Corrections Act of 2010
Pub. L. 111–327 § 2(a)(19)(A) · 124 Stat. 3557
Substituted · 11 U.S.C. § 524(k)(3)(J)(i)
Pub. L. 111–327, § 2(a)(19)(A), in last undesignated par., substituted “property securing the lien” for “security property”
Substituted · 11 U.S.C. § 524(k)(3)(J)(i)
Pub. L. 111–327, § 2(a)(19)(A), in last undesignated par., substituted “amount of the allowed secured claim” for “current value of the security property”
Inserted · 11 U.S.C. § 524(k)(3)(J)(i)
Pub. L. 111–327, § 2(a)(19)(A), in last undesignated par., inserted “must” before “make a single payment”
Source evidence
Code amendment note
Subsec. (k)(3)(J)(i). Pub. L. 111–327, § 2(a)(19)(A), in last undesignated par., substituted “property securing the lien” for “security property” and “amount of the allowed secured claim” for “current value of the security property” and inserted “must” before “make a single payment”.Enacted provision · exact public law section
(A) in the last undesignated paragraph of the quoted matter in paragraph (3)(J)(i)— (i) by striking “security property” the 1st place it appears and inserting “property securing the lien”, (ii) by striking “current value of the security property” and inserting “amount of the allowed secured claim”, and (iii) in the last sentence by inserting “must” after “you”, andBankruptcy Technical Corrections Act of 2010
Pub. L. 111–327 § 2(a)(19)(B) · 124 Stat. 3557
Substituted · 11 U.S.C. § 524(k)(5)(B)
Pub. L. 111–327, § 2(a)(19)(B), substituted “that,” for “that”
Source evidence
Code amendment note
Subsec. (k)(5)(B). Pub. L. 111–327, § 2(a)(19)(B), substituted “that,” for “that”.Enacted provision · exact public law section
(B) in paragraph (5)(B) by striking “that” and inserting “that,”,Small Business Reorganization Act of 2019
Pub. L. 116–54 § 4(a)(9)(A)(i) · 133 Stat. 1079
Inserted · 11 U.S.C. § 524(a)(1)
Pub. L. 116–54, § 4(a)(9)(A)(i), inserted “1192,” after “1141,”
Source evidence
Code amendment note
Subsec. (a)(1). Pub. L. 116–54, § 4(a)(9)(A)(i), inserted “1192,” after “1141,”.Enacted provision · exact public law section
(i) in paragraph (1), by inserting “1192,” after “1141,”; andEffective 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.Small Business Reorganization Act of 2019
Pub. L. 116–54 § 4(a)(9)(A)(ii) · 133 Stat. 1079
Inserted · 11 U.S.C. § 524(a)(3)
Pub. L. 116–54, § 4(a)(9)(A)(ii), inserted “1192,” after “523,”
Source evidence
Code amendment note
Subsec. (a)(3). Pub. L. 116–54, § 4(a)(9)(A)(ii), inserted “1192,” after “523,”.Enacted provision · exact public law section
(ii) in paragraph (3), by inserting “1192,” after “523,”;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.Small Business Reorganization Act of 2019
Pub. L. 116–54 § 4(a)(9)(B) · 133 Stat. 1079
Inserted · 11 U.S.C. § 524(c)(1)
Pub. L. 116–54, § 4(a)(9)(B), inserted “1192,” after “1141,”
Source evidence
Code amendment note
Subsec. (c)(1). Pub. L. 116–54, § 4(a)(9)(B), inserted “1192,” after “1141,”.Enacted provision · exact public law section
(B) in subsection (c)(1), by inserting “1192,” after “1141,”; andEffective 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.Small Business Reorganization Act of 2019
Pub. L. 116–54 § 4(a)(9)(C) · 133 Stat. 1079
Inserted · 11 U.S.C. § 524(d)
Pub. L. 116–54, § 4(a)(9)(C), inserted “1192,” after “1141,” in introductory provisions
Source evidence
Code amendment note
Subsec. (d). Pub. L. 116–54, § 4(a)(9)(C), inserted “1192,” after “1141,” in introductory provisions.Enacted provision · exact public law section
(C) in subsection (d), 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.
39 of 43 references resolved to an enrolled provision · 4 partial
Notes
Historical and Revision Notes
legislative statements
Section 524(a) of the House amendment represents a compromise between the House bill and the Senate amendment. Section 524(b) of the House amendment is new, and represents standards clarifying the operation of section 524(a)(3) with respect to community property.
Sections 524(c) and (d) represent a compromise between the House bill and Senate amendment on the issue of reaffirmation of a debt discharged in bankruptcy. Every reaffirmation to be enforceable must be approved by the court, and any debtor may rescind a reaffirmation for 30 days from the time the reaffirmation becomes enforceable. If the debtor is an individual the court must advise the debtor of various effects of reaffirmation at a hearing. In addition, to any extent the debt is a consumer debt that is not secured by real property of the debtor reaffirmation is permitted only if the court approves the reaffirmation agreement, before granting a discharge under section 727, 1141, or 1328, as not imposing a hardship on the debtor or a dependent of the debtor and in the best interest of the debtor; alternatively, the court may approve an agreement entered into in good faith that is in settlement of litigation of a complaint to determine dischargeability or that is entered into in connection with redemption under section 722. The hearing on discharge under section 524(d) will be held whether or not the debtor desires to reaffirm any debts.
senate report no. 95–989
Subsection (a) specifies that a discharge in a bankruptcy case voids any judgment to the extent that it is a determination of the personal liability of the debtor with respect to a prepetition debt, and operates as an injunction against the commencement or continuation of an action, the employment of process, or any act, including telephone calls, letters, and personal contacts, to collect, recover, or offset any discharged debt as a personal liability of the debtor, or from property of the debtor, whether or not the debtor has waived discharge of the debt involved. The injunction is to give complete effect to the discharge and to eliminate any doubt concerning the effect of the discharge as a total prohibition on debt collection efforts. This paragraph has been expanded over a comparable provision in Bankruptcy Act § 14f [section 32(f) of former title 11] to cover any act to collect, such as dunning by telephone or letter, or indirectly through friends, relatives, or employers, harassment, threats of repossession, and the like. The change is consonant with the new policy forbidding binding reaffirmation agreements under proposed 11 U.S.C. 524(b), and is intended to insure that once a debt is discharged, the debtor will not be pressured in any way to repay it. In effect, the discharge extinguishes the debt, and creditors may not attempt to avoid that. The language “whether or not discharge of such debt is waived” is intended to prevent waiver of discharge of a particular debt from defeating the purposes of this section. It is directed at waiver of discharge of a particular debt, not waiver of discharge in toto as permitted under section 727(a)(9).
Subsection (a) also codifies the split discharge for debtors in community property states. If community property was in the estate and community claims were discharged, the discharge is effective against community creditors of the nondebtor spouse as well as of the debtor spouse.
Subsection (b) gives further effect to the discharge. It prohibits reaffirmation agreements after the commencement of the case with respect to any dischargeable debt. The prohibition extends to agreements the consideration for which in whole or in part is based on a dischargeable debt, and it applies whether or not discharge of the debt involved in the agreement has been waived. Thus, the prohibition on reaffirmation agreements extends to debts that are based on discharged debts. Thus, “second generation” debts, which included all or a part of a discharged debt could not be included in any new agreement for new money. This subsection will not have any effect on reaffirmations of debts discharged under the Bankruptcy Act [former title 11]. It will only apply to discharges granted if commenced under the new title 11 bankruptcy code.
Subsection (c) grants an exception to the anti-reaffirmation provision. It permits reaffirmation in connection with the settlement of a proceeding to determine the dischargeability of the debt being reaffirmed, or in connection with a redemption agreement permitted under section 722. In either case, the reaffirmation agreement must be entered into in good faith and must be approved by the court.
Subsection (d) provides the discharge of the debtor does not affect co-debtors or guarantors.
Editorial Notes
References in Text
The Bankruptcy Act, referred to in subsec. (b)(1), is act July 1, 1898, ch. 541, 30 Stat. 544, which was classified generally to former Title 11.
The date of the enactment of this subsection, referred to in subsec. (g)(7), is the date of enactment of Pub. L. 103–394, which enacted subsec. (g) and was approved .
The date of the enactment of this Act, referred to in subsec. (h), probably means the date of enactment of Pub. L. 103–394, which enacted subsec. (h) and was approved .
The Truth in Lending Act, referred to in subsec. (k), is title I of Pub. L. 90–321, , 82 Stat. 146, as amended, which is classified generally to subchapter I (§ 1601 et seq.) of chapter 41 of Title 15, Commerce and Trade. Sections 103, 127(b), and 128(a)(4) of the Act are classified to sections 1602, 1637(b), and 1638(a)(4), respectively, of Title 15. For complete classification of this Act to the Code, see Short Title note set out under section 1601 of Title 15 and Tables.
Section 19(b)(1)(A)(iv) of the Federal Reserve Act, referred to in subsecs. (k)(6)(B) and (m)(2), is classified to section 461(b)(1)(A)(iv) of Title 12, Banks and Banking.
Amendments1984–2019 · 6 rounds
2019
Subsec. (a)(1). Pub. L. 116–54, § 4(a)(9)(A)(i), inserted “1192,” after “1141,”.
Subsec. (a)(3). Pub. L. 116–54, § 4(a)(9)(A)(ii), inserted “1192,” after “523,”.
Subsec. (c)(1). Pub. L. 116–54, § 4(a)(9)(B), inserted “1192,” after “1141,”.
Subsec. (d). Pub. L. 116–54, § 4(a)(9)(C), inserted “1192,” after “1141,” in introductory provisions.
2010
Subsec. (k)(3)(J)(i). Pub. L. 111–327, § 2(a)(19)(A), in last undesignated par., substituted “property securing the lien” for “security property” and “amount of the allowed secured claim” for “current value of the security property” and inserted “must” before “make a single payment”.
Subsec. (k)(5)(B). Pub. L. 111–327, § 2(a)(19)(B), substituted “that,” for “that”.
2005
Subsec. (a)(3). Pub. L. 109–8, § 1210, substituted “section 523, 1228(a)(1), or 1328(a)(1), or that” for “section 523, 1228(a)(1), or 1328(a)(1) of this title, or that”.
Subsec. (c)(2). Pub. L. 109–8, § 203(a)(1), added par. (2) and struck out former par. (2) which read as follows:
“(2)(A) 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; and
“(B) such agreement contains a clear and conspicuous statement which advises the debtor that such agreement is not required under this title, under nonbankruptcy law, or under any agreement not in accordance with the provisions of this subsection;”.
Subsecs. (i), (j). Pub. L. 109–8, § 202, added subsecs. (i) and (j).
Subsecs. (k) to (m). Pub. L. 109–8, § 203(a)(2), added subsecs. (k) to (m).
1994
Subsec. (a)(3). Pub. L. 103–394, § 501(d)(14)(A), substituted “1328(a)(1)” for “1328(c)(1)”. See 1986 Amendment note below.
Subsec. (c)(2). Pub. L. 103–394, § 103(a)(1), designated existing provisions as subpar. (A), inserted “and” at end, and added subpar. (B).
Subsec. (c)(3). Pub. L. 103–394, § 103(a)(2), struck out “such agreement” after “which states that” in introductory provisions, struck out “and” at end of subpar. (A), inserted “such agreement” in subpars. (A) and (B), and added subpar. (C).
Subsec. (c)(4). Pub. L. 103–394, § 501(d)(14)(B), substituted “rescission” for “recission”.
Subsec. (d). Pub. L. 103–394, § 103(b), inserted “and was not represented by an attorney during the course of negotiating such agreement” after “this section” in introductory provisions.
Subsec. (d)(1)(B)(ii). Pub. L. 103–394, § 501(d)(14)(C), inserted “and” at end.
Subsecs. (g), (h). Pub. L. 103–394, § 111(a), added subsecs. (g) and (h).
1986
Subsec. (a)(1). Pub. L. 99–554, § 257(o)(1), inserted reference to section 1228 of this title.
Subsec. (a)(3). Pub. L. 99–554, § 257(o)(2), which directed the substitution of “, 1228(a)(1), or 1328(a)(1)” for “or 1328(a)(1)” was executed by making the substitution for “or 1328(c)(1)” to reflect the probable intent of Congress. See 1994 Amendment note above.
Subsec. (c)(1). Pub. L. 99–554, § 257(o)(1), inserted reference to section 1228 of this title.
Subsec. (d). Pub. L. 99–554, § 257(o)(1), inserted reference to section 1228 of this title.
Pub. L. 99–554, § 282, substituted “shall” for “may” before “hold” in first sentence, inserted “any” after “At” in second sentence, and inserted “the court shall hold a hearing at which the debtor shall appear in person and” after “then” in third sentence.
Subsec. (d)(2). Pub. L. 99–554, § 283(k), substituted “section” for “subsection” after “subsection (c)(6) of this”.
1984
Subsec. (a)(2). Pub. L. 98–353, §§ 308(a), 455, struck out “or from property of the debtor,” before “whether or not discharge”, and substituted “an act” for “any act”.
Subsec. (a)(3). Pub. L. 98–353, § 455, substituted “an act” for “any act”.
Subsec. (c)(2). Pub. L. 98–353, § 308(b)(1), (3), added par. (2). Former par. (2), which related to situations where the debtor had not rescinded the agreement within 30 days after the agreement became enforceable, was struck out.
Subsec. (c)(3), (4). Pub. L. 98–352, § 308(b)(3), added pars. (3) and (4). Former pars. (3) and (4) redesignated (5) and (6), respectively.
Subsec. (c)(5). Pub. L. 98–353, § 308(b)(2), redesignated former par. (3) as (5).
Subsec. (c)(6). Pub. L. 98–353, § 308(b)(2), (4), redesignated former par. (4) as (6) and generally amended par. (6), as so redesignated, thereby striking out provisions relating to court approval of such agreements as are entered into in good faith and are in settlement of litigation under section 523 of this title or provide for redemption under section 722 of this title.
Subsec. (d)(2). Pub. L. 98–353, § 308(c), substituted “subsection (c)(6)” for “subsection (c)(4)”.
Subsec. (f). Pub. L. 98–353, § 308(d), added subsec. (f).
Statutory Notes and Related Subsidiaries
Effective Date of 2019 Amendment
Amendment by Pub. L. 116–54 effective 180 days after , see section 5 of Pub. L. 116–54, set out as a note under section 101 of this title.
Effective Date of 2005 Amendment
Amendment by Pub. L. 109–8 effective 180 days after , 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 1994 Amendment
Amendment by Pub. L. 103–394 effective , and, except with respect to amendment by section 111(a) of Pub. L. 103–394, amendment by Pub. L. 103–394 not applicable with respect to cases commenced under this title before , see section 702 of Pub. L. 103–394, set out as a note under section 101 of this title.
Effective Date of 1986 Amendment
Amendment by section 257 of Pub. L. 99–554 effective 30 days after , 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 282 and 283 of Pub. L. 99–554 effective 30 days after , 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 , see section 552(a) of Pub. L. 98–353, set out as a note under section 101 of this title.
Construction
Pub. L. 103–394, title I, § 111(b), , 108 Stat. 4117, provided that: “Nothing in subsection (a), or in the amendments made by subsection (a) [amending this section], shall be construed to modify, impair, or supersede any other authority the court has to issue injunctions in connection with an order confirming a plan of reorganization.”
Credits
1978–2019 · 7 acts
- 1978Pub. L. 95–598, , 92 Stat. 2592
- 1984Pub. L. 98–353, title III, §§ 308, 455, , 98 Stat. 354, 376
- 1986Pub. L. 99–554, title II, §§ 257(o), 282, 283(k), , 100 Stat. 3115–3117
- 1994Pub. L. 103–394, title I, §§ 103, 111(a), title V, § 501(d)(14), , 108 Stat. 4108, 4113, 4145
- 2005Pub. L. 109–8, title II, §§ 202, 203(a), title XII, § 1210, , 119 Stat. 43, 194
- 2010Pub. L. 111–327, § 2(a)(19), , 124 Stat. 3559
- 2019Pub. L. 116–54, § 4(a)(9), , 133 Stat. 1086.
Show as published
(Pub. L. 95–598, , 92 Stat. 2592; Pub. L. 98–353, title III, §§ 308, 455, , 98 Stat. 354, 376; Pub. L. 99–554, title II, §§ 257(o), 282, 283(k), , 100 Stat. 3115–3117; Pub. L. 103–394, title I, §§ 103, 111(a), title V, § 501(d)(14), , 108 Stat. 4108, 4113, 4145; Pub. L. 109–8, title II, §§ 202, 203(a), title XII, § 1210, , 119 Stat. 43, 194; Pub. L. 111–327, § 2(a)(19), , 124 Stat. 3559; Pub. L. 116–54, § 4(a)(9), , 133 Stat. 1086.)