For other versions of this document, see http://wikileaks.org/wiki/CRS-RL30454 ------------------------------------------------------------------------------ Order Code RL30454 CRS Report for Congress Received through the CRS Web Comparison of the Bankruptcy Reform Act, H.R. 833, 106th Congress, Passed by the House and the Senate March 6, 2000 Robin Jeweler Legislative Attorney American Law Division Congressional Research Service ~ The Library of Congress Comparison of the Bankruptcy Reform Act, H.R. 833, 106th Congress, Passed by the House and the Senate Summary On May 5, 1999, the House passed H.R. 833, the Bankruptcy Reform Act , 106th Cong., 1st Sess. (1999), by a vote of 313-108. The Senate brought S. 625, the Bankruptcy Reform Act, 106th Cong., 1st Sess. (1999), to the floor on November 4, 1999. After considerable debate and the adoption of many germane and nongermane amendments, the Senate struck the language of the House version, substituted its language, and passed H.R. 833 on February, 2, 2000, by a vote of 83-14. This report surveys the legislation's legislative history. It provides a brief narrative and side-by-side comparison of selected provisions in the House and Senate bills, with an emphasis on consumer bankruptcy. Contents Legislative history in the 105th Congress . . . . . . . . . . . . . . . . . . . . . . . 1 H.R. 833 and S. 625, 106th Congress, 1st Sess. (1999): The Bankruptcy Reform Acts of 1999 and 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Structural overview of the Senate and House bills . . . . . . . . . . . . . . . 3 Side-by-side comparison . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Comparison of the Bankruptcy Reform Act, H.R. 833, 106th Congress, Passed by the House and the Senate On May 5, 1999, the House passed H.R. 833, the Bankruptcy Reform Act , 106th Cong., 1st Sess. (1999), by a vote of 313-108.1 The Senate brought S. 625, the Bankruptcy Reform Act, 106th Cong., 1st Sess. (1999), to the floor on November 4, 1999. After considerable debate and the adoption of many germane and nongermane amendments, the Senate struck the language of the House version, substituted its language, and passed H.R. 833 on February, 2, 2000, by a vote of 83-14. When the Senate brought S. 625 to the floor, more than 300 germane and nongermane amendments were offered. Many amendments, including a modified manager's amendment, were passed. Others failed or were tabled. Among the nongermane amendments that passed was one which increased the federal minimum wage and amended provisions in the Internal Revenue Code dealing with small business taxes, long term health care insurance, and pensions.2 Another nongermane amendment, entitled the "Methamphetamine Anti-Proliferation Act," involves criminal enforcement of drug laws.3 At this time, official House and Senate conferees have not been announced. Whether the nongermane provisions will be stripped from the Senate bill or addressed in a conference is the subject of speculation.4 This report surveys the legislation's legislative history. It provides a brief narrative and side-by-side comparison of selected provisions in the House and Senate bills, with an emphasis on consumer bankruptcy. Legislative history in the 105th Congress. Shortly before the close of the second session of the 105th Congress, legislation which would have dramatically changed the manner in which consumer bankruptcies are administered under the U.S. Bankruptcy Code, 11 U.S.C. § 101 et seq., came close to passage. Both the House 1 H.Rept. 106-123, 106th Cong., 1st Sess. (1999). 2 Titles XII and XIII of H.R. 833, 106th Cong., 2nd Sess. (2000). 3 Title XVII, id. 4 See, e.g., "Pensions Provisions, Tax Breaks Expected to be Dropped from Senate Bankruptcy Bill" and "Tax Breaks in Bankruptcy Bill Could be Added Back, Armey Says," in 12 BBLR 148-150 (Feb. 10, 2000). CRS-2 and Senate enacted different versions of H.R. 3150, 105th Congress, 2d Sess. (1998). A conference was agreed to and a report was filed.5 The House agreed to the conference report version of the bill by a vote of 300 to 125 on October 9, 1998. But the bill, which President Clinton had threatened to veto, was not brought before the Senate for a vote prior to adjournment.6 Although the Senate and House bills differed significantly, they were referred to as implementing "needs based" bankruptcy, i.e.,a consumer bankruptcy system that differentiates among debtors and, by application of external jurisdictional standards or through case-by-case scrutiny, imposes strict filing standards and strives to ensure that creditors receive a higher distribution than they might otherwise. H.R. 833 and S. 625, 106th Congress, 1st Sess. (1999): The Bankruptcy Reform Acts of 1999 and 2000. Like their predecessors, both bills are comprehensive. With respect to consumer bankruptcy, a great deal of the impetus towards legislative action has been fueled by the ever-increasing rate of consumer bankruptcy filings.7 Congressional debate over bankruptcy reform during the 105th Congress repeatedly evidenced a desire by Members to elevate personal responsibility in consumer financial transactions; to prevent bankruptcy filings from being utilized by consumers as a financial planning tool rather than a last-resort solution to personal financial crisis; and, to recapture the stigma associated with a bankruptcy filing, which many believe has eroded since enactment of the U.S. Bankruptcy Code in 1978. Opponents of the legislation argue, inter alia, that the growth in consumer bankruptcies is not a result of liberal bankruptcy laws but is the consequence of greatly expanded consumer credit and high-risk lending practices; that the imposition of a means test will permit debtors to manipulate jurisdictional filing criteria; that undermining the "fresh start" in bankruptcy by making commercial debt nondischargeable will adversely impact debtors' family support obligations; that the increased cost of administering the U.S. Bankruptcy Court system will not be justified by the incremental increase in debt recovery realized by creditors; and, that the legislation is no longer warranted because recent statistics indicate that consumer bankruptcy filings have leveled off and, in some instances, declined. Hearings during the 106th Congress elicited testimony by many experts suggesting significant disagreement over the causes of increased consumer filings and the most effective way to enhance debt repayment.8 5 H.Rept. 105-794, 105th Cong., 2d Sess. (1998). 6 "Bankruptcy Reform Bill's Fate in Doubt; Congress, Administration Seek Middle Ground," 10 BBLR 1044 (October 15, 1998). 7 H.Rept. 105-540, 105th Cong., 2d Sess. 54-55 (1998) to accompany H.R. 3150; S.Rept. 105-253, 105th Cong., 2d Sess. 22 (1998) to accompany S. 1301. 8 On March 11, 1999, House and Senate Judiciary Subcommittees held a joint bankruptcy hearing. The House Subcommittee on Commercial and Administrative Law held additional hearings on March 16, 17, and 18. CRS-3 Structural overview of the Senate and House bills. Consumer bankruptcy reform. Titles I through III of the Senate bill encompass amendments to consumer bankruptcy, including the needs-based approach to chapter 7 and 13 filings. The House bill addresses these provisions in Titles I and II. General business and small business bankruptcy. The Senate bill deals with these topics in Title IV; the House in Titles III and IV. Municipal bankruptcy. Amendments to Chapter 9 of the U.S. Bankruptcy Code dealing with municipal reorganization are addressed in Title V of both the Senate and House bills. Streamlining the bankruptcy system. Title VI of the House bill contains substantive and procedural provisions addressing consumer bankruptcy. The Senate bill does not have a comparable title, but, in some cases, has analogous provisions in other titles. Improved bankruptcy statistics and data. Title VI of the Senate bill and Title VII of the House bill create rules for collection and analysis of bankruptcy statistics. Bankruptcy tax provisions. Title VII of the Senate version and Title VIII contain extensive provisions governing taxation of the bankruptcy estate. (Compare Title XIII of the Senate bill which makes extensive amendments to the Internal Revenue Code.) Ancillary and cross-border cases. Title VIII of the Senate bill and Title IX of the House bill would add a new chapter 15 to the Code to address issues arising from international insolvencies. Financial contract provisions. Title IX of the Senate bill and Title X of the House bill deal with commercial banking and financial issues such as forward contracts, netting, swap and repurchase agreements, and asset-backed securitizations. Technical corrections. Title XIV of the Senate bill is entitled "Technical Amendments." Title XI of the House bill is "Technical Corrections." Both are Bankruptcy Code related. In the Senate bill, however, the technical corrections appear broader in scope. For example, provisions create temporary bankruptcy judgeships;9 duplicate "family fishermen" provisions under Title X;10 and, contain provisions that are arguably substantive, for example: ! prohibiting a bankruptcy filing by a political committee subject to the jurisdiction of the Federal Election Commission; making fines or penalties imposed under federal election law nondischargeable;11 and 9 H.R. 833, passed by the Senate at § 1425. 10 Id. at § 1426. 11 Id at. §§ 1430- 1431. CRS-4 ! raising the jurisdictional debt limit for family farmers from $1,500,000 to $3,000,000 and reducing the farming debt requirement from 80 percent of indebtedness to 50 percent.12 Several of the germane and non-germane amendments adopted by the Senate during floor debate appear as separate titles of the bill. They do not have analogous titles in the House version, although in many instances there are comparable provisions in the bill. Protection of family farmers and family fishermen. Organized as Title X of the Senate bill, this title would define a "family fisherman" and include this new debtor class under chapter 12 coverage. Special bankruptcy protections would inure to "family fishermen." Health care and employee benefits. Title XI of the Senate bill has provisions providing for the disposal of patient records and/or transfer of patients of a specified "health care facility" in the event of a bankruptcy necessitating closure. It designates the costs incurred by a trustee or federal agency in closing the business, disposing of records, and transferring patients as administrative expenses. The trustee is expressly directed to "use all reasonable and best efforts" in the transfer of patients to appropriate facilities. A patient ombudsman must be appointed by the court to monitor patient care and report to the court during the bankruptcy. Amendments to Fair Labor Standards Act of 1938 and tax relief. Titles XII and XIII of the Senate bill make amendments to the minimum wage provision of the Fair Labor Standards Act. The minimum wage would be raised from $5.15 to $6.15 per hour, phased in through March 1, 2002. Amendments to the Internal Revenue Code are made in Title XIII. They address issues such as small business tax relief, health and long-term care insurance, and pensions. Subtitle D of Part VI is entitled "Revenue Provisions." Provisions of this Title of the Senate version have been criticized by some Members of the House for violating the constitutional requirement that revenue generating measures originate in the House. Financial institutions insolvency improvement. Title XVI of the Senate bill amends provisions of the Federal Deposit Insurance Act, 12 U.S.C. § 1811 et seq., dealing with insolvent financial institutions. Several sections correspond to amendments to the Bankruptcy Code made by Title IX of the bill dealing with financial contracts, including statutory definitions of various agreements. Several comparable provisions are included in Title X of the House bill. Methamphetamine and other controlled substances. Title XVII of the Senate bill would enact the "Methamphetamine Anti-Proliferation Act of 2000." Protection from the impact of bankruptcy of certain electric utilities. Title XVIII of the Senate bill would enact the "Emergency Imported Electric Power Price Reduction Act of 2000." This act would abrogate and void a contract for the importation of electric power by the Vermont Joint Owners under the Firm Power 12 Id. at § 1437. CRS-5 And Energy Contract with Hydro-Quebec dated December 4, 1987. It would vest enforcement of an amended contract in applicable states' attorney generals. Consumer credit disclosure. Title XIX of the Senate bill would amend the Truth in Lending Act (TILA), 15 U.S.C. § 1601 et seq., to require enhanced minimum payment disclosures under an open end credit plan; enhanced disclosures regarding the tax deductibility of credit extensions which exceed the fair market value of a dwelling for credit transactions secured by the consumer's dwelling; enhanced disclosures related to introductory "teaser" rates; additional disclosures related to Internet-based open end credit solicitations; and disclosures related to late payment deadlines and penalties. TILA would be amended to prohibit termination of a credit account because the consumer has not incurred finance charges. Several related provisions exist in the House bill. Side-by-side comparison. The chart below provides a brief comparison of selected provisions in the Senate and House bills.13 Selected Provisions H.R. 833 (S. 625) as H.R. 833 as passed by passed by the Senate the House Means test, 11 U.S.C. § § 704, 707: Implementation Would amend 11 U.S.C. § All parties may move for 707 to permit creditors, the conversion to chapter 13, trustee, or any party in but the standing trustee interest to challenge a must review each filing and debtor's eligibility to file move for conversion where under chapter 7. If abuse is found. § 102 indicated, the U.S. trustee must file a statement that the debtor's case is a presumed abuse of chapter 7. § 102. Definition of "current Income excludes Social Excludes Social Security monthly income" Security benefits. benefits and payments to victims of war crimes or crimes against humanity. 13 For a detailed side-by-side comparison prepared by the law firm of Davis Polk & Wardwell of the U.S. Code as amended by the respective bills, s e e <[www.dpw.com/bankruptcyreform]>. Additional side-by-side comparisons are available at the American Bankruptcy Institute's website <[www.abiworld.org/legis]>. CRS-6 Selected Provisions H.R. 833 (S. 625) as H.R. 833 as passed by passed by the Senate the House Presumed abuse Debtor presumed to be Abuse exists if, by abusing chapter 7 if current calculating monthly monthly income, excluding income, excluding allowed allowed deductions, secured deductions, secured debt debt payments, and priority payments, and priority unsecured debt payments, unsecured debt payments, multiplied by 60, would and multiplying by 60 permit a debtor to pay the months, there is a surplus lesser of 25% of of not less than $6,000 (or nonpriority unsecured debt $100 per month over 60 or $15,000 (or $250 per months). § 102. month over 60 months). Calculation of permissible Expenses to be calculated Expenses to be calculated monthly living expenses "under standards issued by as specified under the the Internal Revenue National Standards and Service for the area in Local Standards, and the which the debtor resides." debtor's actual monthly expenses for the categories Individualized expenses specified as Other may include charitable and Necessary Expenses issued religious contributions of by the Internal Revenue up to 15% of the debtor's Service for the area in gross annual income; debts which the debtor resides. A incurred to protect the debtor may also subtract an debtor's family from allowance of up to 5% of domestic violence; actual the IRS food and clothing expenses for the care and categories. support of nondependent, elderly, ill or disabled Individualized expenses household or family may include private school members; and, arrearage tuition of up to $10,000 per payments to secured year; charitable and creditors necessary to religious contributions of maintain possession of the up to 15% of the debtor's debtor's home or motor gross annual income, vehicle.§ 102. administrative expenses, and reasonable attorneys fees. § 102. CRS-7 Selected Provisions H.R. 833 (S. 625) as H.R. 833 as passed by passed by the Senate the House To rebut the presumption The debtor must The debtor must of abuse demonstrate "special demonstrate "extraordinary circumstances." § 102. circumstances." § 102. Safe harbor exemption The U.S. trustee or No party may make a from the means test bankruptcy administrator motion to convert the may file a statement that a debtor to chapter 13 if the conversion motion would debtor (and spouse not be appropriate if the combined) have a monthly debtor's current monthly income "equal to or less income is less than the than the regional median highest national or the household income applicable State median calculated on a semiannual family income. basis." § 102. The U.S. trustee may also decline to file a motion to convert if the debtor's monthly income is between 100 and 150% of the national or applicable State median income, and would permit a debtor to pay the lesser of 25% of nonpriority unsecured debt or $15,000 (or $250 per month over 60 months). § 102. Attorney sanctions for If a trustee moves to have a If a panel trustee brings a improper filing debtor's case converted and successful motion for the court approves it and dismissal or conversion, finds that the filing was counsel for the debtor will "frivolous," counsel for the be liable to reimburse the debtor must reimburse the trustee for costs, attorneys' trustee for costs, including fees, and payment of a civil attorneys' fees, and may be penalty if the court finds a required to pay a civil violation of Bankruptcy penalty. § 102. Rule 9011. § 102. CRS-8 Selected Provisions H.R. 833 (S. 625) as H.R. 833 as passed by passed by the Senate the House Creditor sanctions for The court may award the The court may award the improper motions debtor costs for contesting debtor costs in contesting an unsuccessful motion to an unsuccessful motion to convert if the court finds convert if the court finds that the motion was not that the motion was not substantially justified, or substantially justified, or was intended to coerce the was intended to coerce the debtor into waiving rights debtor into waiving rights under the Bankruptcy under the Bankruptcy Code. A creditor whose Code. § 102 claim is less than $1000 is not liable for sanctions. § 102 Dismissal of filings by A crime victim or party in No comparable provision. persons convicted of interest may request violent crimes or drug dismissal of the voluntary trafficking bankruptcy case of the convicted debtor. The court must grant the dismissal unless the filing is necessary to satisfy a domestic support obligation. § 102 Mandatory credit Debtor must undergo credit Comparable provisions, but counseling counseling within 180 days the debtor must undergo of filing, and may not credit counseling within 90 obtain a discharge until days of filing. Debtors completion of a personal must also complete an financial management approved instructional instructional course. course. The U.S. trustee or The Federal Trade bankruptcy administrator Commission and the U.S. for the judicial district is trustee shall regulate and directed to oversee and approve credit counseling approve nonprofit budget agencies. § 302. and credit counseling agencies. § 106 CRS-9 Selected Provisions H.R. 833 (S. 625) as H.R. 833 as passed by passed by the Senate the House Audits The Attorney General is Comparable provision at directed to establish a § 602. procedure to ensure random audits of no less than 1out of every 250 individual filings; The U.S. trustee is authorized to enter into contracts with auditors, and to take action when misstatements in the debtor's petition and schedules are identified. § 601. Promotion of alternative Creditor's allowable claim The court may reduce a dispute resolution may be reduced by 20% if creditor's claim by 20% if a court finds that the the debtor can prove by creditor "unreasonably "clear and convincing" refused to negotiate a evidence that a creditor reasonable alternative unreasonably refused to repayment schedule negotiate alternative proposed by an approved repayment of at least 60% credit counseling agency." of the debt. § 109. § 201. Reaffirmation agreements Imposes enhanced Imposes enhanced requirements for approval requirements for approval of a reaffirmation of a reaffirmation agreement when the debtor agreement when the debtor is not represented by is not represented by counsel; requires U.S. counsel. § 108. Attorney and FBI to investigate abusive Allows a debtor to recover reaffirmation practices; actual damages or $1000, authorizes states attorney whichever is greater, when generals to bring class a creditor violates actions to recover damages reaffirmation agreement for violations of requirements, but prohibits reaffirmation provisions. class actions to redress § 203. abusive reaffirmation practices by creditors. § 114. CRS-10 Selected Provisions H.R. 833 (S. 625) as H.R. 833 as passed by passed by the Senate the House Homestead exemption Imposes a federal cap of Imposes lengthened $100,000 on exemptions residency requirements. under state law and §§ 124-125. lengthened residency requirements. States are not Imposes a $250,000 cap on permitted to opt out of the homestead exemptions federal cap. §§ 307, 308 (except for family farmers). and 324. Allows states to opt out of the monetary cap; delays effective date until the end of the first regular session of each state legislature following enactment. § 147. Exemption for saving for Subject to certain IRS Allows a debtor, subject to postsecondary education requirements, excludes certain requirements, to funds up to $5000 made exempt up to $50,000 for within a year of filing in an one child, or $100,000 per education individual family for postsecondary retirement account; and/or education. § 113. funds used to purchase a tuition credit or certificate under a qualified state tuition program. §225 Retirement Savings Would clarify and expand Comparable provision at Exemption Broadened the law to provide that § 203. retirement accounts that are tax exempt under the Internal Revenue Code are exempted from the debtor's estate. § 224 Withheld Wages for Withheld wages for No comparable provision. Contributions to contributions to employee Employee Benefit Plans benefit plans would be excluded from the debtor (employer's ) estate. This would override the current unsecured priority at § 507(a)(3) which caps priority benefit claims at $4,300. § 322. CRS-11 Selected Provisions H.R. 833 (S. 625) as H.R. 833 as passed by passed by the Senate the House Domestic support owed to Would move domestic Comparable provision at individuals and support obligations to first § 139. government units made priority, which is currently first priority allocated to administrative expenses of the bankruptcy estate. Administrative expenses would become second priority. § 212. Priority assigned to A new § 507 tenth priority Comparable provision at claims for liability is created for unsecured § 129. incurred by the debtor claims for liability incurred DUI by a debtor from driving or operating a vessel while under the influence of alcohol or drugs. Claims of this nature are also nondischargeable. § 223. Trustee notification of Would direct the trustee to Comparable provision at child support claim notify a priority child § 149. holders support recipient of the existence of a state child support enforcement agency, and, upon discharge, the existence of nondischargeable and reaffirmed debt. § 219. Definition of "household Defines household goods Defines household goods goods" narrowly to include only 1 more broadly to include radio; 1 television; 1 VCR; "personal property and 1 personal computer normally found in or but only if used for the around a residence," education or entertainment excluding motor vehicles. of a minor child. § 313. § 145. Plan duration Debtors who have been Chapter 13 plans to have 5 converted to chapter 13 year duration for families from chapter 7 will have 5 whose monthly income is year plans; other debtors not less than the highest will have 3 year plans. national median family § 318. income. Families below the highest national median income would have 3 year plans. § 606. CRS-12 Selected Provisions H.R. 833 (S. 625) as H.R. 833 as passed by passed by the Senate the House Residential lease excepted The automatic stay will not Comparable provision at from the automatic stay operate to stop the § 136. continuation of, or in some cases, the commencement of eviction actions by a lessor against a debtor involving rental property in which the debtor resides. § 311. Nondischargeable debts Consumer debts presumed Consumer debts owed to a Consumer debts owed to a fraudulent single creditor for more single creditor for more than $250 for "luxury than $250 for "luxury goods" incurred within 90 goods" incurred within 90 days of filing; and cash days of filing presumed to advances for more than be fraudulent. § 133 $750 under an open end credit plan within 70 days of filing are presumed to be nondischargeable. § 310 Debts incurred to pay Debts incurred with an Comparable provision, but nondischargeable debts intent to pay a all debts incurred within 90 are nondischargeable nondischargeable debt will days of filing to pay become nondischargeable; nondischargeable debts are debts incurred within 70 nondischargeable without days will be presumed to be regard to intent. § 146. nondischargeable. § 314. Debts to government units Defines "domestic support Comparable provisions at for domestic support obligation" to include debts §§ 138-139. owed to or recoverable by a governmental unit. §§ 211, 215. Expanded definition of Adds qualified educational Comparable provision at student loan loans as defined under § § 281. 221 of the IRS to those educational loans that are currently nondischargeable. § 220. CRS-13 Selected Provisions H.R. 833 (S. 625) as H.R. 833 as passed by passed by the Senate the House Expanded definition of Expands the types of post- Comparable provision at nondischargeable petition condo and § 214. condominium and homeowners association homeowners association fees that are fees nondischargeable by omitting requirement that in order to be nondischargeable the debtor must reside in it postpetition. § 414. Debts incurred through the Any debt that results from No comparable provision. commission of violence at any judgment entered in a health care facilities, state or federal court for including abortion clinics damages to a clinic or violation of the civil rights of individuals providing or obtaining reproductive health care services would be nondischargeable. § 328. Loan repayments to Makes nondischargeable, Comparable provision at debtor's retirement i.e., allows an employer to § 203. savings or thrift plan withhold from debtor's wages loan repayments to debtor's savings/retirement plan. § 224. CRS-14 Selected Provisions H.R. 833 (S. 625) as H.R. 833 as passed by passed by the Senate the House Lien stripping on security Chapter 13 debtors would Consumer debtors would interests in consumer not be permitted to not be permitted to goods (cramdown) bifurcate security interests bifurcate secured claims for in an automobile purchased consumer goods purchased within 5 years of the filing; within 5 years of the or in other consumer goods bankruptcy filing. A purchased within 6-months secured creditor's of the filing. § 306. allowable claim would be the retail cost to replace the item. §§ 122-123. Consumer credit practices Amendments to the Truth TILA amended to require TILA amended to require in Lending Act enhanced minimum enhanced minimum payment disclosures under payment disclosures under an open end credit plan; an open end credit plan; enhanced disclosures disclosures related to regarding the tax introductory "teaser" rates; deductibility of credit and, disclosures related to extensions which exceed Internet-based open end the fair market value of a credit solicitations. dwelling for credit § 112. transactions secured by the consumer's dwelling; disclosures related to introductory "teaser" rates; disclosures related to Internet-based open end credit solicitations; and disclosures related to late payment deadlines and penalties. TILA would be amended to prohibit termination of a credit account because the consumer has not incurred finance charges. §§ 1901- 1906. CRS-15 Selected Provisions H.R. 833 (S. 625) as H.R. 833 as passed by passed by the Senate the House Consumer credit studies The Board of Governors of The Board of Governors of the Federal Reserve would the Federal Reserve would be directed to study existing be directed to study protections for consumers existing protections for for unauthorized use of a consumers for unauthorized dual use debit card. § 1907 use of a dual use debit card. § 111. The Board would be directed to study the tax deductibility of credit extensions which exceed the fair market value of a dwelling for open and closed end credit transactions secured by the consumer's dwelling; to study the impact of minimum periodic payment features on consumer default rates and financial difficulty; and, if appropriate, to issue regulations to provide more disclosure concerning these practices. § § 110, 112. CRS-16 Selected Provisions H.R. 833 (S. 625) as H.R. 833 as passed by passed by the Senate the House Study of bankruptcy impact Comptroller General Comparable provision at of credit extended to directed to study § 609. dependent students bankruptcy impact of credit extensions to students in postsecondary school. § 1908. Business Bankruptcy Small business bankruptcy Subtitle B of Title IV has Title IV of the bill deals provisions defining a with "small business" "small business" for chapter 11 filings. A small chapter 11 purposes as one business is defined as one with debts under with debts of under $3,000,000. The debtor's $4,000,000. The debtor's period of exclusivity to file period of exclusivity to file a reorganization plan is 180 a reorganization plan is 90 days. A plan must be days. A plan must be confirmed within 175 days. confirmed within 150 days. Provisions require Provisions require establishment of uniform establishment of uniform accounting and reporting accounting and reporting standards for small standards for small businesses. Grounds for businesses. Grounds for appointment of a trustee appointment of a trustee and the trustee's general and the trustee's general supervisory duties are supervisory duties are expanded, as are grounds expanded, as are grounds for dismissal or conversion for dismissal or conversion of the case. §§ 431-442. of the case. §§ 401-413. Venue for chapter 11 No comparable provision Venue for filing corporate corporate filings chapter 11 reorganizations would be where the debtor's principal place of business is located. § 304. General provisions In forma pauperis filings Directs the Judicial Comparable provision that Conference to prescribe gives courts broader procedures for waiving discretion to waive bankruptcy fees for an bankruptcy fees for an individual debtor under individual in chapter 7 who chapter 7 whose income is cannot pay in installments. less than 125 percent of the § 148. income official poverty line and who is unable to pay the fee in installments. § 420. CRS-17 Selected Provisions H.R. 833 (S. 625) as H.R. 833 as passed by passed by the Senate the House General effective date Subject to express Comparable provision at provisions otherwise, the § 1201. new law will take effect 180 days after enactment and will not apply to cases commenced before the effective date. § 1501. Bankruptcy judgeships Creates new temporary Comparable provision at bankruptcy judgeships for § 128. designated districts. § 1425. ------------------------------------------------------------------------------ For other versions of this document, see http://wikileaks.org/wiki/CRS-RL30454