Sec. 102. Chapter 10 individual bankruptcy
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Title 11, United States Code, is amended by inserting after section 946 the following: SUBCHAPTER I—General provisions Sec. 1001. Trustee. 1002. Rights and powers of debtor. 1003. Debtor engaged in business. 1004. Possession of property of the estate. 1005. Conversion or dismissal. 1006. Treatment of certain contracts and leases. 1007. Treatment of rental purchase agreements. 1008. Obtaining credit. 1009. Stay of action against codebtor. 1010. Interpretive principle. SUBCHAPTER II—Plans 1021.
Filing of plans. 1022. Contents of plans. 1023. Plan confirmation hearing. 1024. Confirmation of plans. 1025. Payments under a repayment plan. 1026. Payments under a residence plan or property plan. 1027. Protection of lessors and purchase money lenders. 1028. Effect of confirmation. 1029. Modification of repayment plan. SUBCHAPTER III—Discharge 1031. Discharge; scope and timing. 1032. Revocation of discharge or order of confirmation. SUBCHAPTER IV—Avoidance actions 1041. Treatment of certain liens. 1042.
Limitations on avoidance actions. SUBCHAPTER V—Limited proceedings 1051. Election of limited proceeding. 1052. Effect of limited proceeding. 1053. Dismissal or conversion of limited proceedings. Except as provided by section 1052, in a case under this chapter, the United States trustee— shall appoint 1 disinterested individual to serve as trustee from the panel of private trustees under section 586(a) of title 28 or a standing trustee under subsection
(b)of that section who meets the requirements of a trustee under section 522 of this title; or may serve as trustee. The trustee shall— perform the duties required under paragraphs
(2)through
(5)and
(7)of section 704; appear and be heard at any hearing that concerns— the value of property subject to a lien; or confirmation of a repayment plan, a residence plan, or a property plan; advise, other than on legal matters, and assist the debtor in the formulation of, and performance under, any plan; ensure that the debtor commences making timely payments under section 1025; in the case of a debtor against whom there is a claim for a domestic support obligation, provide the notices required under subsection (d); and in the case of a debtor engaged in business as described in section 1003(a), perform the duties required under paragraphs
(3)and
(4)of section 1106(a). The trustee may not— serve as an advocate for debtors or creditors; advise debtors or creditors on legal matters; or raise an objection to a plan filed under section 1021 solely on the basis of the treatment of a secured claim under the plan. In this subsection, the term State or local child support enforcement agency means any agency of a State or political subdivision thereof operating pursuant to a plan described in section 454 of the Social Security Act ( 42 U.S.C. 654 ) that has been approved by the Secretary of Health and Human Services under part D of title IV of such Act ( 42 U.S.C. 651 et seq.). In the case of a debtor against whom there is a claim for a domestic support obligation, the trustee shall— provide written notice of the claim to the holder of the domestic support obligation that includes— a notice of the right of the holder to use the services of a State or local child support enforcement agency for assistance in collecting child support during and after the case; and the address and telephone number of the State or local child support enforcement agency of the State or political subdivision thereof in which the holder resides; provide written notice of the claim to the State or local child support enforcement agency of the State or political subdivision thereof in which the holder resides that includes the name, address, and telephone number of the holder of the domestic support obligation; and on the date on which the debtor is granted a discharge under section 1031, provide written notice to the holder of the domestic support obligation and the State or local child support enforcement agency of the State or political subdivision thereof in which the holder resides of— the granting of the discharge; the most recent known address of the debtor; the most recent known name and address of the most recent known employer of the debtor; and the name of each creditor that holds a claim that is not discharged under paragraph
(2)or
(4)of section 523(a). The holder of a claim for domestic support against the debtor or a State or local child support enforcement agency of the State or political subdivision thereof in which the holder resides may request from a creditor described in paragraph (2)(C)(iv) the most recent known address of the debtor. Notwithstanding any other provision of law, a creditor that makes a disclosure in connection with a request made under subparagraph
(A)shall not be liable for making the disclosure. Subject to any limitations of a trustee under this chapter, the debtor shall have, exclusive of the trustee, the rights and powers of a trustee under— subsections (b), (c), (d), (f), and
(l)of section 363; and section 364. The debtor may avoid a transfer of property of the debtor or recover a setoff if— the transfer is avoidable by the trustee under section 544, 545, 547, 548, 549, or 1041 or recoverable by the trustee under section 553; and the trustee does not attempt to avoid the transfer; or section 1042 prohibits the trustee from avoiding the transfer. For the purposes of this chapter, a debtor is engaged in business if the debtor is— self-employed; and required to withhold taxes under section 3402 of the Internal Revenue Code of 1986. Unless the court orders otherwise, a debtor engaged in business may operate the business of the debtor and, subject to any limitations on a trustee under sections 363(c) and 364 and to such limitations or conditions as the court prescribes, shall have, exclusive of the trustee, the rights and powers of the trustee under such sections. A debtor engaged in business— shall perform the duties of the trustee required under section 704(7); and is not subject to the provisions of section 308. The debtor shall remain in possession of all property of the estate, unless— a confirmed plan or an order confirming a plan provides otherwise; or the court, for cause, orders otherwise. At any time, the debtor may convert a case under this chapter to a case under— chapter 11, if the debtor is eligible under section 109(e); or chapter 12, if the debtor is eligible under section 109(f). After notice and a hearing, the court, on its own motion, or on a motion by a creditor, the United States trustee, the trustee, or any other party in interest, may, for cause, dismiss a case under this chapter or, with the consent of the debtor, convert a case under this chapter to a case under chapter 11 or 12, including— unreasonable delay by the debtor that is prejudicial to creditors; nonpayment of any fees or costs required under section 1930 of title 28; failure to timely file a plan under section 1021, unless the debtor is eligible for a discharge without a plan under section 1031; failure to commence making timely payments required under section 1025 if the debtor files a repayment plan; denial of confirmation of a plan under section 1024 and denial of a request for additional time for filing another plan; except as provided by section 1052(8), and only on request of the United States trustee, failure of the debtor in a voluntary case to file, not later than 14 days after the date of the commencement of the case, or additional time as the court may allow, the information required under section 521(a)(1); and failure to file a repayment plan, if required, by the deadline prescribed under section 1021(e). Notwithstanding subsection (b), after notice and a hearing, the court, on its own motion or on a motion by the United States trustee or the trustee, may dismiss a case on grounds that the granting of relief would be a manifestly improper use of the bankruptcy system. For the purpose of subparagraph (A), the failure of a debtor to pay an amount that is greater than the minimum payment obligation under a repayment plan alone does not constitute a manifestly improper use of the bankruptcy system. At the request of the debtor, at any time, the court shall dismiss a case under this chapter if the case has not been converted under subsection (a). A waiver of the right to dismiss a case under this section is unenforceable. Notwithstanding a provision in any contract or unexpired lease, or in applicable law, with respect to any contract or unexpired lease of the debtor, the contract or lease and any right or obligation under the contract or lease may not be terminated or modified, and neither the debtor nor any individual liable on such contract or unexpired lease with the debtor may be declared in default under the contract or lease at any time during or after the case, solely because of a provision in the contract or lease that is conditioned on— the insolvency or financial condition of the debtor at any time before the closing of the case; the commencement of a case under this title; the appointment of, or taking possession by— a trustee in a case under this title; or a custodian before the commencement of a case under this title; or the filing of a plan or the exercise of any other right under this title. In this section, the term rental-purchase agreement means an agreement, irrespective of form— for the use of personal property, other than a vehicle, by the debtor for personal, family, or household purposes; that is renewable with each payment; and that permits, but does not obligate, the debtor to become the owner of the property that is the subject of the agreement. For the purpose of this chapter and notwithstanding applicable nonbankruptcy law, the lessor on a rental-purchase agreement does not have an interest in the property covered by the rental-purchase agreement. Notwithstanding section 365 and subject to subsection (d), in a case under this chapter, the debtor may elect to retain the property covered by a rental-purchase agreement. Notwithstanding section 365 and subject to section 502, if the debtor elects to retain the property covered by a rental-purchase agreement, the lessor-seller shall have a claim for the sum of— accrued and unpaid rent under the rental-purchase agreement; and if the debtor has elected to become owner of the property under the rental-purchase agreement, future rent and other payments due under the rental-purchase agreement. Nothing in this section shall be construed to prohibit the debtor from terminating a rental-purchase agreement. Any attempt to exercise the rights of a lessor-seller under a rental-purchase agreement or applicable nonbankruptcy law after the issuance of a discharge under section 1028 shall be deemed to be a violation of section 524(a). In this section, the term credit has the meaning given the term in section 103 of the Truth in Lending Act ( 15 U.S.C. 1602 ). The debtor in a case under this chapter may not obtain credit outside the ordinary course of the affairs of the debtor without prior authorization by the court. After notice and a hearing, the court shall may authorize the debtor to obtain credit under paragraph
(1)or incur debt only if it is in the best interests of the debtor. Any credit obtained or debt incurred by a debtor not in accordance with this subsection is void. In no event may the court authorize the debtor to obtain credit with an annual percentage rate that exceeds the annual percentage rate described in section 987(b) of title 10. Credit obtained by a debtor pursuant to this section shall comply with applicable nonbankruptcy law. This section shall apply to credit obtained by a debtor until the date on which the case is closed under section 350. Except as provided in subsections
(b)and
(c)of this section, after the entry of the order for relief under this chapter, a creditor may not act or commence or continue any civil action to collect all or any part of a consumer debt of the debtor from any individual that is liable on the consumer debt with the debtor or that secured the consumer debt, unless— the individual became liable on, or secured, the consumer debt in the ordinary course of business of the individual; or the case is closed, dismissed, or converted to a case under chapter 11 or 12 of this title. A creditor may present a negotiable instrument, and may give notice of dishonor of such an instrument. On request of a party in interest and after notice and a hearing, the court shall grant relief from the stay provided under subsection
(a)with respect to a creditor, to the extent that— as between the debtor and the individual protected under subsection (a), the individual received consideration for the claim held by the creditor; the plan filed by the debtor does not propose to pay the claim; or the interest of the creditor would be irreparably harmed by a continuation of the stay. On the date that is 20 days after the date on which a party in interest files a request under subsection
(c)for relief from the stay provided under subsection (a), the stay shall be terminated with respect to the party in interest, unless the debtor or any individual that is liable on the consumer debt with the debtor files and serves upon the party in interest a written objection to the proposed relief from the stay. In cases in under this chapter, the provisions of this title shall be interpreted liberally in favor of relief for consumer debtors. Except as provided in subsection (c), the debtor may file— a repayment plan that solely provides for the treatment of unsecured claims; a residence plan that solely provides for the treatment of claims secured by the debtor's principal residence; or a property plan that solely provides for the treatment of claims secured by property that is not the debtor's principal residence. Subject to subparagraph (B), the debtor may file 1 or more plans. If the court confirms a repayment plan of a debtor, the debtor may not file an additional repayment plan in a case under this chapter. Except as provided in section 1023(a), each plan shall be treated separately for purposes of confirmation, discharge, and revocation of an order of confirmation or discharge. In a case commenced under section 303— a petitioning creditor may file only a repayment plan under which the minimum payment obligation of the debtor shall be calculated to exclude any amounts required by clause
(ii)or
(iii)of section 101(54)(B); the debtor may file a repayment plan, which shall supersede any repayment plan filed under paragraph (1); and if more than 1 petitioning creditor files a repayment plan under paragraph
(1)and the debtor does not file a repayment plan under paragraph (2), the court shall confirm the repayment plan that is in the best interest of creditors. A debtor with a minimum payment obligation of $0 shall receive a discharge under section 1031 without filing a plan if the debtor is otherwise eligible to receive a discharge under this chapter. The debtor shall promptly file a plan within such period of time as permitted in a rule prescribed the Judicial Conference of the United States, except that the court may extend such time period for cause. A repayment plan— shall provide that— the debtor shall satisfy the minimum payment obligation by— making deferred cash payments; or upon request of the trustee, and subject to paragraph (2), tendering to the trustee all property of the estate that is not exempt under section 522 not later than 30 days after the date on which the court confirms the plan, unless the court orders a later date; any payments under the repayment plan occur during a period not to exceed 36 months from the date on which the first payment is due under a repayment plan under section 1025(b)(1); and any payment under a repayment plan, other than the final payment, shall be in an amount that is not less than the payments required for 36 equal monthly installments, unless the court orders otherwise for cause, which may include the irregular or seasonal nature of the debtor's income; and may— pursuant to section 365, provide for the assumption, rejection, or assignment of any executory contract or unexpired lease of the debtor that has not previously been assumed or rejected under that section; provide for the payment in full, in deferred cash payments, over the duration of the repayment plan, of any claim based on a debt of a kind described in section 523 if the plan also provides for the payment in full, in deferred cash payments, of all claims entitled to priority under section 507, other than the claim of a holder that is based on a debt described in section 507 that agrees to a different treatment of that claim; provide for the exercise of any other power of the debtor or the trustee under this title; provide for an order garnishing the earnings of the debtor or ordering the authorization of electronic fund transfers from a deposit account of the debtor during the duration of the repayment plan; and include any other appropriate provision not inconsistent with this title. The trustee shall request the tender of property of the estate that is not exempt under section 522 only if the liquidation of such property would be reasonably likely to produce a meaningful distribution to creditors. In lieu of tendering nonexempt property of the estate under paragraph (1)(A)(i)(II), the debtor may elect to pay to the trustee under the repayment plan an amount equal to the value of the interest of the debtor in such property that is in excess of the sum of— any allowed secured claims that are secured by that property; and any exemption applicable under section 522(b). A residence plan may— modify or leave unaffected the rights of a holder of a claim secured by the debtor's principal residence; provide for the waiving or curing within a reasonable time of any default on any claim secured by the debtor's principal residence in accordance with subsection (d); provide for payment of any allowed secured claim secured by the debtor's principal residence; authorize the debtor to sell any property that is the debtor's principal residence free and clear of any liens not earlier than 60 days and not later than 180 days after the date of confirmation if the plan provides that— the debtor shall tender the property that is the debtor's principal residence to the holder of the first-priority lien, subject to a lien secured by any allowed secured claim of a junior lienholder; upon acceptance of the tender described in subparagraph (A), the debtor shall transfer the debtor's principal residence to the holder of the first-priority lien not later than 14 days after acceptance of the tender; and if there is not a timely acceptance of the tender of the principal residence— a sale free and clear of liens of the debtor's principal residence shall be conducted in a commercially reasonable manner; and after deducting the costs of the sale, any liens against the debtor's principal residence shall attach to the proceeds of the sale; provide for an order garnishing the earnings of the debtor or authorizing electronic fund transfers from a deposit account of the debtor during the duration of the residence plan, but only to the extent necessary to cure any default on a claim secured by the debtor's principal residence in accordance with subsection (d); and include any other appropriate provision not inconsistent with this title. A property plan may— modify or leave unaffected the rights of holders of claims secured by the property, other than property that is the debtor's principal residence; provide for the curing or waiving within a reasonable time of any default on any claim secured by the property of the debtor that is not the debtor's principal residence in accordance with subsection (d)(2); provide for payment of any allowed secured claim secured by the property of the debtor that is not the debtor's principal residence; subject to section 522(e), treat as the holder of a secured claim— the seller or assignee of an installment sales contract for personal property or the equivalent of such a contract; the lessor of a lease of personal property, the term of which extends beyond the remaining economic life of the property; or a party to an agreement, irrespective of form, that is a security interest in personal property under applicable nonbankruptcy law; provide for an order garnishing the earnings of the debtor or ordering the authorization of electronic fund transfers from a deposit account of the debtor during the duration of the property plan; and include any other appropriate provision not inconsistent with this title. Notwithstanding any applicable nonbankruptcy law, a default with respect to, or that gives rise to, a lien on the property that is the debtor's principal residence may be cured by a residence plan under subsection (a)(2)(B) until the debtor ceases to have rights, including a right of redemption, in the property. Notwithstanding section 506(b), if a repayment plan, a residence plan, or a property plan provides for the curing of a default, the amount necessary to cure the default shall be determined in accordance with the underlying agreement and applicable nonbankruptcy law. The cure of a default under subparagraph
(A)may not require— interest on arrearages; or the payment of any penalty rate, late fee, or payment required under a penalty provision or a similar provision. If the trustee, the United States trustee, or a creditor objects to confirmation of a plan filed under section 1021, the court shall hold a hearing on confirmation of the plan within such period of time as permitted in a rule prescribed the Judicial Conference of the United States, except that the court may extend such time period for cause. If no objection is raised, the court shall, upon notice, promptly confirm a plan that complies with section 1024(a) without a hearing. If the debtor files more than 1 plan under section 1021, the court shall hold a single hearing on confirmation on all of the plans, unless— the court orders otherwise for cause; or no hearing is required under subsection (b). Subject to subsections
(b)through (d), the court shall confirm a plan under this section if all of the following requirements are met: The plan complies with the applicable provisions of this title, other than section 1022(a)(1). Any fee, charge, or amount that is required to be paid before confirmation under chapter 123 of title 28 or the plan has been paid. The plan has not been proposed— in bad faith, which may not be demonstrated solely by the amount of payments proposed by the debtor under a repayment plan; or by any means forbidden by law. The debtor is likely to be able to make all payments under the plan and to comply with the plan. In the case of a debtor that is required by a judicial or administrative order or by a statute to pay a domestic support obligation, the debtor has paid all amounts required by such domestic support obligation that first became payable after the date of the filing of the petition. Any compensation paid under the plan to the attorney of the debtor is reasonable and satisfies the requirements of section 329(c). If the trustee or the holder of an allowed unsecured claim objects to a repayment plan that complies with subsection (a), the court shall confirm the repayment plan only if— the plan satisfies the requirements of section 1022(a)(1); or the court finds that, because of circumstances that the debtor cannot reasonably avoid, the debtor is justly excused from satisfying all or part of the requirements of section 1022(a)(1). If the holder of an allowed secured claim secured by the debtor's principal residence objects to the confirmation of a residence plan, the court shall confirm the residence plan only if, for any such allowed secured claim of which the holder has objected to the confirmation, the residence plan provides that— the holder retains the lien securing the claim; the value, as of the effective date of the residence plan, of the payments to be distributed under the residence plan on account of the claim is not less than the allowed amount of the secured claim; payments on all claims under the residence plan are in equal monthly amounts, other than payments to cure a default under section 1022(a)(2)(B); except as provided in paragraph (5), default under the residence plan constitutes default under any security agreement that creates a security interest in the debtor's principal residence; the debtor will be in default for a late payment under the plan and any security agreement that creates a security interest in the debtor's principal residence only if the debtor is more than 120-days delinquent on any payment under the residence plan; the holders of any judicial lien or statutory lien created before the order for relief cannot exercise any remedies under applicable nonbankruptcy law, unless the debtor is 120-days delinquent on any payment under the residence plan; the last payment on account of the secured claim is due on a date that is not later than the later of— 15 years after the date of confirmation of the residence plan; or 5 years after the original maturity date of the loan relating to the claim; and the debt secured by the debtor's principal residence that is dealt with by the residence plan has not been previously provided for by a residence plan that was— confirmed on a date that is not more than 6 years before the date of the filing of the petition; and completed. If the holder of an allowed secured claim that is secured by property that is not the debtor's principal residence objects to the confirmation of a property plan, the court shall confirm the property plan only if— the property plan provides that— the holder of the claim retains the lien securing the allowed secured claim; the value, as of the effective date of the property plan, of the property to be distributed under the property plan on account of the claim is not less than the amount of the allowed secured claim, unless— the property securing the claim is a motor vehicle that was acquired by the debtor within the 90-day period immediately preceding the date of the filing of the petition; and the lien securing the claim is a purchase-money security interest; the value, as of the effective date of the property plan, of property to be distributed on account of a claim described in clauses
(i)through
(iii)of subparagraph
(B)is not less than the allowed amount of the claim, as calculated under section 502; payments on all claims under the property plan are in equal monthly amounts; except as provided in subparagraph (F), default under the property plan constitutes default under any security agreement that creates a security interest in the property subject to the property plan; the debtor is in default for a late payment under the plan and any security agreement that creates a security interest in the property subject to the property plan only if the debtor is not less than 90 days delinquent on payment to the holder of the security interest under the property plan; the property plan provides that the holder of a judicial lien or statutory lien created before the date of the order for relief cannot exercise any remedies relating to the judicial lien or statutory lien under applicable nonbankruptcy law, unless the debtor is not less than 90 days delinquent on any payment to the lienholder under the property plan; the last payment due under the property plan is due on a date that is not later than the later of— 5 years after the date of confirmation of the property plan; or the original maturity date of loan; and the debt secured by the property that is dealt with by the property plan has not been previously provided for by a property plan that was— confirmed on a date that is not more than 6 years before the date of the filing of the petition; and completed; if the property securing the claim of the objecting holder is a motor vehicle— the debtor has provided the holder of any security interest in the motor vehicle with reasonable evidence of the maintenance of any required insurance coverage on the motor vehicle securing the claim sufficient to protect the interest of the holder in the motor vehicle; and the motor vehicle is— used regularly as a means of transportation for the debtor or a dependent of the debtor; or used by the debtor or a dependent of the debtor in business; and if the property securing the claim of the objecting holder is not a motor vehicle— the property is reasonably necessary for the support or maintenance of the debtor or a dependent of the debtor; or the property is reasonably necessary for the continuation, preservation, and operation of a business owned or operated by the debtor or a dependent of the debtor. The holder of an allowed secured claim that is not impaired under a plan may not object to a residence plan under subsection
(c)or a property plan under subsection (d). For the purpose of this subsection, impairment shall be determined under section 1124. A denial of a motion to confirm a plan shall constitute a final, appealable order. Nothing in this section shall be construed to prevent a debtor from proposing to modify a plan that has been denied confirmation. If the debtor has filed multiple plans, any party in interest may request that the confirmation of any plan be stayed until the date on which the court confirms or denies any other plan. The rate of interest that shall be used to calculate the value of property distributed under a plan, as of the effective date of the plan, shall be— for the purpose of subsection (c)(2)— in the case of a first priority lien, the current average prime offer rate (as defined in section 1026.35(a)(2) of title 12, Code of Federal Regulations) for a loan of the most similar duration and rate type; and in the case of any other lien, a rate that is 300 basis points greater than the current average prime offer rate (as defined in section 1026.35(a)(2) of title 12, Code of Federal Regulations) for a loan of the most similar duration and rate type; and for the purpose of subsection (d)(2), the current average prime offer rate for motor vehicle financing of the most similar duration and rate type, as determined by the Bureau of Consumer Financial Protection under section 201(e) of the Consumer Bankruptcy Reform Act of 2020. The trustee shall— collect and be accountable for any future income of the debtor that is designated for a payment to a creditor under a repayment plan; accept and be accountable for any property of the estate tendered by the debtor pursuant to a repayment plan under section 1022(a)(1)(A)(i)(II); and reduce to money and be accountable for any property of the estate tendered by the debtor under the repayment plan as expeditiously as is compatible with the best interests of the parties in interest. Except as provided by section 1027 and unless the court orders otherwise, not later than 30 days after the date of the order for relief under this chapter, the debtor shall— commence making payments in the amount proposed to be made under a repayment plan; and tender to the trustee any relevant property of the estate requested by the trustee under section 1022(a)(1)(A)(i)(II), unless the debtor has elected under section 1022(a)(2)(B) to pay the trustee for the value of such property under a repayment plan. The trustee shall retain a payment made under paragraph
(1)until the date on which the repayment plan is confirmed or denied under section 1024. If a repayment plan is confirmed under section 1024, the trustee shall distribute any payments retained under subparagraph
(A)in accordance with the repayment plan as soon as is practicable. The trustee, after deducting the sum of each allowed administrative expense under section 503(b), shall return to the debtor any payments retained under paragraph
(1)if the case is dismissed or converted. Subject to section 363, pending confirmation of a repayment plan, the court, after notice and a hearing, may for cause modify, increase, or reduce the payments required under this subsection. Except as otherwise provided in the repayment plan or in the order confirming the repayment plan, after confirmation of the plan, the trustee shall make payments to creditors under the repayment plan. Except as provided in subsection (d), the trustee may not make a payment described in section 1022(a)(1)(B)(ii) under a repayment plan until the date on which the trustee makes every payment in accordance with any entitlement of a creditor, including a creditor provided for under section 1022(a)(1)(B)(ii), to payment under the minimum payment obligation. Subject to paragraphs
(2)and (3), all payments made by the trustee under this section shall be disbursed according to the order of priority in section 726. Before or at the time of each payment to a creditor under a repayment plan, the trustee shall pay any unpaid claim of a kind specified in section 507(a)(2). In disbursing payments under this section, the trustee shall, at the time of each disbursement, pay— any unpaid claim of the kind described in section 507(a)(2); and if a standing trustee appointed under section 586(b) of title 28 is serving in the case, the percentage fee fixed for the standing trustee under section 586(e) of title 28. Subject to any exemption allowed under section 522, the trustee shall disburse any property the trustee recovers under section 550 in accordance with this subsection. Subject to paragraph (2), the obligations of a debtor under a repayment plan may be enforced solely by the trustee. The holder of a claim provided for under section 1022(a)(1)(B)(ii) may enforce the debt that is the basis for the claim in accordance with section 1028(b). The trustee may not commence any action to enforce an obligation of the debtor under a repayment plan based on a delinquent payment until after the date on which the debtor has been delinquent on the payment for an 90-day period. Subject to sections 362 and 1029 and paragraph (7), the trustee may enforce an obligation of the debtor under a repayment plan only as a simple contract under applicable nonbankruptcy law. Except as provided in section 1029, enforcement of the obligations of a debtor under a repayment plan shall be subject to applicable nonbankruptcy law, including laws relating to the garnishment of the wages of the debtor. The trustee may not enforce an obligation of the debtor under a repayment plan if the reasonably anticipated costs of the enforcement would exceed the reasonably anticipated recovery to creditors after deducting the fee and expenses of the trustee. An action by the trustee to enforce an obligation of the debtor under a repayment plan may not be commended on a date that is more than 2 years after the earliest date on which the trustee may bring an action under paragraph (3). Any assignment, factoring, or transferring of rights or amounts a debtor owes to a trustee under a repayment plan, or of rights or authority to collect any such amounts, is void. Payments under a residence plan or a property plan shall be made by the debtor in accordance with the plan. If a residence plan or property plan proposes to cure a default on a claim secured by property of the debtor, the debtor may, upon completion of the cure payments due under the plan, certify to the holder of such claim using a form prescribed by the Judicial Conference of the United States, with notice given to the court, that the default has been cured. A certification of a debtor of cure of a default by the debtor under paragraph
(1)shall constitute presumptive evidence that the default has in fact been cured. The debtor shall timely make any payments scheduled in a lease of personal property directly to the lessor for the portion of the obligation that becomes due after the date of the order for relief under this chapter, unless— the court orders otherwise; the debtor rejects a lease of personal property under section 365(a); or the debtor assumes a lease of personal property under section 365(p)(1)(B). Not later than 60 days after the date of the order for relief under this chapter, a debtor who has proposed a plan that retains possession of personal property subject to a lease a purchase money security interest shall— provide the lessor or holder of the claim reasonable evidence of the maintenance of any insurance coverage required under the lease or purchase money security agreement with respect to the use or ownership of the property; and continue to provide the reasonable evidence required under paragraph
(1)for as long as the debtor retains possession of the property before the date of confirmation of a plan addressing the property. The provisions of a confirmed plan bind the debtor and each creditor of a claim for which the plan provides, regardless of whether the creditor has objected to the plan. Confirmation of a repayment plan shall operate as an injunction against the commencement or continuation of an action, the employment of process, or an act to collect, recover, or offset any debt excepted from discharge under section 523(a) and treated under section 1022(a)(1)(B)(ii) until— the date on which the debtor completes all payments due under the plan; or the debtor is not less than 90 days delinquent on a payment required under a repayment plan. Except as provided in subsection (e), confirmation of a residence plan shall operate as an injunction against the commencement or continuation of an action, the employment of process, or an act, to collect, recover, or offset any debt treated under section 1022(b)(2) or property securing such debt as long as the debtor is not more than 120 days delinquent on a payment required under a residence plan. Except as provided in subsection (e), confirmation of a property plan shall operate as an injunction against the commencement or continuation of an action, the employment of process, or an act, to collect, recover, or offset any debt treated under section 1022(c)(2) or property securing such debt as long as the debtor is not more than 90 days delinquent on a payment required under a property plan. A party in interest may request from the court relief from the operation of an injunction under subsection
(c)or (d). Except as otherwise provided in a plan or the order confirming the plan, the confirmation of a plan vests all of the property of the estate in the debtor. Except as otherwise provided in a plan or in the order confirming the plan, the property vesting in the debtor under subsection
(f)is free and clear of any claim or interest of any creditor holding a claim provided for by the plan. Except as provided by section 1031, the confirmation of a repayment plan leaves unaltered the rights of the holder of a secured claim that has not been avoided under this title. The confirmation of a repayment plan creates a lien in favor of the trustee in the amount of the minimum payment obligation on any non-exempt property of the estate retained by the debtor pursuant to section 1022(a)(1)(A)(i)(II) to secure the minimum payment obligation. Without regard to the knowledge of the trustee or any creditor, a lien created under paragraph
(1)shall have the same status, priority, rights, and powers, with respect to the property retained by the debtor to secure the obligation, as— a creditor, regardless of whether such a creditor exists, that extends credit to the debtor at the time of the commencement of the case and obtains, at such time, and with respect to such credit, a judicial lien on any such non-exempt property that is personal property; a bona fide purchaser of any such real property, other than fixtures, from the debtor against whom applicable law permits such transfer to be perfected and that obtains the status of a bona fide purchaser; and has perfected such transfer at the time of the commencement of the case, whether or not any such purchaser exists; the holder of a perfected security interest in any such personal property of the debtor against which applicable law permits such security interest to be perfected as of the date of the confirmation of the repayment plan, whether or not such a holder exists; or the holder of a perfected garnishment lien against the wages of the debtor, whether or not such a holder exists. A lien created under paragraph (1)— may not be considered a garnishment for the purposes of section 304(a) of the Consumer Credit Protection Act ( 15 U.S.C. 1674(a) ); and shall be subordinate to any lien for payment of a domestic support obligation. The trustee shall record a lien created under paragraph
(1)in the bankruptcy lien filing system maintained by the Executive Office of the United States Trustee under section 501 of the Consumer Bankruptcy Reform Act of 2020. Except to the extent inconsistent with the plan or the provisions of this title, confirmation of a residence plan or a property plan leaves unaltered the rights of the parties under any agreement that is the basis for a claim secured by property provided for by the plan. The confirmation of a plan voids any provision in a contract provided for by the plan that is conditioned on— the insolvency or financial condition of the debtor at any time before the closing of a case; the commencement of a case under this title; or the appointment of, or taking of possession by, a trustee in a case under this title or a custodian before a case is commenced under this title. Notwithstanding any contrary provision of nonbankruptcy law, the confirmation of a plan voids any pre-dispute arbitration agreement or pre-dispute joint-action lawsuit waiver relating to property subject to the plan. Upon confirmation of a plan, the court shall retain jurisdiction to resolve any disputes arising under, or relating to, the plan and may order any appropriate relief in such a dispute, including the suspension of the payment obligations of the debtor under the plan. After notice and a hearing, the court may, for cause, modify an obligation of the debtor under a repayment plan based on a material change in the financial condition of the debtor that— occurs after the date of the confirmation of the repayment plan; and would impose a substantial burden on the debtor or a dependent of the debtor. If the debtor incurs unanticipated attorney’s fees for services provided subsequent to confirmation of a repayment plan, including for services relating to this section, after notice and a hearing, the court may, for cause— subject to section 502(b)(3), allow the debtor to modify the repayment plan to include treatment of such attorney’s fees; and permit the debtor to extend the term of a repayment plan by up to 6 months to facilitate treatment of such attorney’s fees. Subject to subsection (b), the court shall grant the debtor a discharge in accordance with subsection
(c)as soon as is practicable after— the date of confirmation of a repayment plan; or in the case of a debtor that has no minimum payment obligation, the date on which the deadline for filing a repayment plan under section 1021(e) expires. The court may not grant a discharge under subsection
(a)to a debtor who has— been granted a discharge under this section, under section 1141, 1192, 1128, or under former section 727 or 1328, within 6 years of the date of the filing of the petition; failed to tender the property of the estate that is designated to be tendered under a repayment plan under section 1022(a)(1)(A)(i)(II); executed a written waiver of discharge after the date of the order for relief; and appeared at a hearing at which the court determined that the debtor adequately understands the terms and consequences of the waiver described in subparagraph (A); with the intent to hinder, delay, or defraud a creditor or an officer of the estate charged with the custody of property under this title, transferred, removed, destroyed, mutilated, concealed, or permitted the transfer, removal, destruction, mutilation, or concealment of— property of the debtor within 1 year of the date of the filing of the petition; or property of the estate after the date of the filing of the petition; concealed, destroyed, mutilated, falsified, or failed to keep or preserve any recorded information from which the financial condition or business transactions of the debtor might have been ascertained, unless such act or failure was justified under all of the circumstances of the case; knowingly and fraudulently, in the case or in connection with the case— made a false oath or account; presented or used a false claim; gave, offered, received, or attempted to obtain money, property, or advantage, or a promise of money, property, or advantage, for acting or forbearing to act; or withheld from the trustee any recorded information, including books, documents, records, and papers, relating to the property or financial affairs of the debtor; failed to satisfactorily explain, before the determination of denial of discharge under this paragraph, any loss of assets or deficiency of assets to meet the liabilities of the debtor; or refused in the case— to obey any lawful order of the court, other than an order to respond to a material question or to testify; on the ground of privilege against self-incrimination, to respond to a material question approved by the court or to testify after the debtor has been granted immunity with respect to the matter concerning which the privilege was invoked; or on a ground other than a properly invoked privilege against self-incrimination, to respond to a material question approved by the court or to testify. Except as provided in section 523, a discharge under subsection
(a)discharges the debtor from all debts that arose before the date of the order for relief under this chapter and any liability on a claim that is determined under section 502 as if such debt or claim had arisen before the commencement of the case, whether or not— a proof of claim based on any such debt or liability is filed under section 501; or a claim based on any such debt or liability is allowed under section 502. Upon granting a discharge under subsection (a), the court shall include in the discharge order provided to the debtor on a form prescribed by the Judicial Conference of the United States in accordance with rule 9009 of the Federal Rules of Bankruptcy Procedure a conspicuous notice of— the right to bring an action for contempt or a civil action under section 524(c); and the existence of other Federal or State laws that may provide additional remedies to the debtor in the event a person violates section 524. On request of the trustee, a creditor, or the United States trustee, at any time within 1 year after the date of the entry of an order of confirmation under section 1024 or an order of discharge under section 1031, and after notice and a hearing, the court may revoke such order only if— such confirmation or discharge was obtained through the fraud of the debtor and the requesting party did not know of such fraud until after the granting of such confirmation or discharge; or the debtor has refused, in the case— to obey any lawful order of the court, other than an order to respond to a material question or to testify; on the ground of privilege against self-incrimination, to respond to a material question approved by the court or to testify, after the debtor has been granted immunity with respect to the matter concerning which such privilege was invoked; or on a ground other than the properly invoked privilege against self-incrimination, to respond to a material question approved by the court or to testify. If the court revokes an order of confirmation or an order of discharge under subsection (a), the court shall convert or dismiss the case under section 1005. The trustee may avoid a lien that secures a claim of a kind described in section 726(a)(4). The trustee may not bring an action to avoid a transfer or obligation under section 544, 545, 547, 548, 553, or 1041, unless there are allowed unsecured claims against the estate that the debtor does not propose to pay in full under a repayment plan. In a case commenced under section 301 or 302, a debtor that is eligible to file under this chapter may, as part of the petition for relief, elect to conduct a limited proceeding that affects only claims secured by specific items of the property of the debtor under this subchapter. If the debtor does not elect to conduct a limited proceeding in a case under this chapter— the case shall proceed as a general proceeding under this title; and this subchapter shall not apply to the case. After the entry of order for relief, the debtor may not elect to conduct a limited proceeding. Nothing in this section shall preclude a debtor, subsequent to the dismissal of a case, from— filing a petition under section 301 or 302; and electing to conduct a limited proceeding under subsection (a). If the debtor elects to conduct a limited proceeding under section 1051(a)— the debtor shall file with the petition a schedule of affected property designating the property to be subject to the limited proceeding that lists any creditor that has an interest in such property; the property of the estate under section 541 shall be limited to property that the debtor has indicated in the schedule of affected property; sections 341, 365, 1001, 1002, 1003, 1005(a), 1005(b)(4), 1005(b)(7), 1005(c), 1008, 1021(a)(1), 1025, 1027(a), 1031, 1032, 1041, and 1042 shall not apply to the case; subject to any limitations of a trustee under this chapter, the debtor shall have the rights and powers of a trustee under— subsections (b), (c), (d), (f), and
(l)of section 363; and sections 364, 544, 546, 547, 548, 549, and 553; the debtor shall file 1 or more plans under paragraphs
(2)and
(3)of section 1021(a) with respect to property listed in the schedule of affected property within 7 days of the order for relief, or such further time as the court may allow for cause, but in no case more than 30 days after the date of the order for relief; the stay under subsection section 362(a) shall apply only to entities with an interest in the property that the debtor has indicated in the schedule of affected property as intended for treatment under a plan; the debtor shall not be required to file the items required under section 521(a)(1)(B), other than a statement of current income and current expenditures; and notice of the order for relief shall not be required to be provided to parties other than parties with claims secured by property that the debtor has indicated in the schedule of affected property and to the United States trustee. The debtor may elect to dismiss a limited proceeding or convert a limited proceeding to a general proceeding under this chapter by filing a notice of termination or conversion within 7 days of the earlier of— the failure of the debtor to timely file a plan required under section 1052(5); or the failure of the court to confirm a plan within 60 days of the date of the order for relief. If a debtor elects to convert a limited proceeding to a general proceeding under this chapter under subsection (a)— the property of the estate shall be determined under section 541, without regard to section 1052(2), as of the date of the notice of conversion; the stay under section 362(a) shall apply to each entity as of the date of the notice of conversion; notice of the order for relief shall be provided to each party in interest that was not notified under section 1052(8); any timeline for an action to be taken by the debtor under this title that begins on the date of the order for relief shall be adjusted to begin on the date of the notice of conversion; except as provided in section 506, with respect to a creditor that has a claim secured by property included in the schedule of affected property filed under section 1052(1), any claims that arose against the debtor after the date of the order for relief and before the date of the notice of conversion shall be deemed to have arisen immediately before the date of the filing of the petition; and any valuation of property or an allowed secured claim, any determination of a claim allowance, and any other determination made in the course of the limited proceeding may be used in the general proceeding, unless the court for cause orders otherwise. At any time, after notice and a hearing, the court, on its own motion or on a motion by the United States trustee, may dismiss a case that is proceeding as a limited proceeding on the grounds that the granting of relief would be a manifestly improper use of the bankruptcy system. . The table of chapters for title 11, United States Code, is amended by inserting after the item relating to chapter 9 the following: 10. Individual bankruptcy 1001 .
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