Bankruptcy Reform in the 108th Congress

Bankruptcy Reform in the 108th Congress

Order Code RL31783
CRS Report for Congress
Received through the CRS Web
Bankruptcy Reform in
the 108th Congress
Updated January 29, 2004
Angie A. Welborn
Legislative Attorney
American Law Division
Congressional Research Service ˜ The Library of Congress

Bankruptcy Reform in the 108th Congress
Summary
On March 19, 2003, the House of Representatives passed H.R. 975, the
Bankruptcy Abuse Prevention and Consumer Protection Act of 2003. H.R. 975, as
introduced, was substantially similar to the legislation (H.R. 333) approved by both
the House and the Senate during the 107th Congress, but omitted the Schumer
Amendment which would have prevented the discharge of liability for wilful
violation of protective orders and violent protests against providers of “lawful
services,” including reproductive health services. As passed by the House, H.R. 975
was amended to add sections to, among other things, increase the cap on wage and
employee benefit claims. The Senate did not consider H.R. 975 during the first
session of the 108th Congress.
On November 25, 2003, the Senate passed S. 1920, providing for a six-month
extension of Chapter 12 of the Bankruptcy Code. The House took up S. 1920 on
January 28, 2004, with an amendment in the nature of a substitute consisting of the
text of H.R. 975 as passed by the House on March 19, 2003. S. 1920, as amended,
was passed by the House and conferees appointed to resolve differences with the
Senate.
S. 1920, as passed by the House, addresses many areas of bankruptcy practice,
including consumer filings, small business bankruptcy, tax bankruptcy, ancillary and
cross-border cases, financial contract provisions, amendments to chapter 12
governing family farmer reorganization, and health care and employee benefits.
This report provides an overview of selected major provisions of the legislation.
It will be updated as events warrant.

Contents
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Overview of Selected Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Means Test, 11 U.S.C. § § 704, 707 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Additional Consumer Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Nondischargeable Consumer Debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Consumer Credit Disclosure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Business Bankruptcy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
General Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Bankruptcy Reform in the 108th Congress
Introduction
On February 27, 2003, House Judiciary Chairman James Sensenbrenner
introduced H.R. 975, the Bankruptcy Abuse Prevention and Consumer Protection Act
of 2003. Subcommittee hearings were held on March 4, and the legislation was
marked-up and ordered to be reported with technical amendments by the full
committee on March 12.1
On March 19, 2003, the House of Representatives passed H.R. 975 by a vote of
315 - 113. As introduced, the bill was substantially similar to the legislation (H.R.
333) approved by both the House and the Senate during the 107th Congress, but
omitted the “Schumer Amendment” which would have prevented the discharge of
liability for wilful violation of protective orders and violent protests against providers
of “lawful services,” including reproductive health services. Several amendments
were offered pursuant to the rule submitted by the House Rules Committee and
agreed to prior to the debate.2 Three amendments were approved, including one to
increase the cap on wage and employee benefit claims against a corporation that has
filed for bankruptcy.3 An amendment in the nature of a substitute offered by
Representatives Nadler and Conyers did not pass.4
Following passage by the House, the Senate did not consider H.R. 975 during
the first session of the 108th Congress. However, the Senate did pass S. 1920,
providing for a six-month extension of Chapter 12 of the Bankruptcy Code, on
November 25, 2003.5 The bill was passed by the Senate without amendment. On
January 28, 2004, the House took up S. 1920 with an amendment in the nature of a
1 H.Rept. 108-40, 108th Cong., 1st Session (2003).
2 H.Res. 147, 108th Cong, 1st Session (2003).
3 H.Amdt. 8, 149 Cong. Rec. H2051-H2053 (daily ed. March 19, 2003). Other approved
amendments make section 1234 of the bill (related to involuntary cases) applicable to cases
currently pending in the bankruptcy courts (H.Amdt. 10, 149 Cong. Rec. H2055 (daily ed.
March 19, 2003)); and redraft Title IX, entitled Financial Contract Provisions, to make
certain provisions applicable to both bank and credit union federal regulators (H.Amdt. 7,
149 Cong. Rec. H2046-H2051 (daily ed. March 13, 2003)).
4 H.Amdt. 11, 149 Cong. Rec. H2055-H2095, H2096-H2097 (daily ed. March 19, 2003).
An amendment to require corporations to file bankruptcy cases in the district court of the
district in which the corporation’s principal place of business is located also failed (H.Amdt.
9, 149 Cong. Rec. H2053-H2055, H2095-H2096 (daily ed. March 13, 2003)).
5 149 Cong. Rec. S16063 (daily ed. November 25, 2003). For more information on Chapter
12, see CRS Report RS20742, Chapter 12 of the U.S. Bankruptcy Code: Family Farmer
Reorganization, by Robin Jeweler.

CRS-2
substitute consisting of the text of H.R. 975 as passed by the House on March 19,
2003.6 The House passed S. 1920, as amended, by a vote of 265 - 99, and appointed
conferees to resolve differences with the Senate-passed version of S. 1920.7
Overview of Selected Provisions
S. 1920, as passed by the House, addresses many areas of bankruptcy practice,
including consumer filings, small business bankruptcy, tax bankruptcy, ancillary and
cross-border cases, financial contract provisions, amendments to chapter 12
governing family farmer reorganization, and health care and employee benefits.
Certain provisions of the current legislation have received significant attention
in the 108th Congress. The House-approved amendment providing for an increase to
the cap on wage and employee benefit claims was offered in response to the
increased number of high-profile corporate bankruptcies last year. These
bankruptcies often left employees with little or no severance, and greatly reduced or
eliminated any health insurance benefits they may have been entitled to. The
amendment would raise the existing cap of $4,650 to $10,000, giving employees a
priority claim for up to that amount as compensation for services rendered prior to
the bankruptcy. Another provision that has received increased attention is section
414 of S. 1920, which would amend the definition of a disinterested person under the
Bankruptcy Code. Section 414 would eliminate “investment banker” from the
current list of those unable to be identified as a disinterested person. The new
definition would define “disinterested person” as a person that –
(A) is not a creditor, an equity security holder, or an insider; (B) is not and was
not within 2 years before the date of the filing of the petition, a director, officer,
or employee of the debtor; and (C) does not have an interest materially adverse
to the interest of the estate or of any class or creditors or equity security holders,
by reason of any direct or indirect relationship to, connection with, or interest in,
the debtor, or for any other reason.
By eliminating investment bankers from the list of persons who cannot be considered
disinterested, such persons would be able to perform securities work for the debtor
during the debtor’s bankruptcy. This change has not been a focus of the debate thus
far in the 108th Congress, but the provision has received some criticism in the media.8
The following chart provides an overview of selected major provisions of S.
1920, as passed by the House, including provisions related to consumer bankruptcy,
consumer credit disclosure, and business bankruptcy, as well as other general
provisions.
6 H.Res. 503, 108th Cong., 2nd Session. The only amendments made to the text of H.R. 975,
as an amendment in the nature of a substitute to S. 1920, were technical changes. See
H.Amdt. 457, 150 Cong. Rec. H219 (daily ed. January 28, 2004).
7 Roll Call No. 10, 150 Cong. Rec. H219 - H222 (daily ed. January 28, 2004).
8 See e.g., “Bankruptcy Reform ... with a Thorn,” by Michael I. Krauss, Washington Times,
April 25, 2003.

CRS-3
Selected Provisions
S. 1920, as passed by the House, 108th
Congress, 2nd Session (2004)
Means Test, 11 U.S.C. § § 704, 707
Implementation
Would amend 11 U.S.C. § 707 to permit creditors, the
trustee, or any party in interest to challenge a debtor’s
eligibility to file under chapter 7. If 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
Excludes Social Security benefits; payments to victims of
monthly income”
war crimes or crimes against humanity; and payments to
victims of international terrorism . § 102.
Presumed abuse
Debtor presumed to be abusing chapter 7 if current
monthly income, excluding allowed deductions, secured
debt payments, and priority unsecured debt payments,
multiplied by 60, would permit a debtor to pay not less
than the lesser of (a) 25% of nonpriority unsecured debt or
$6,000 (or $100 a month), whichever is greater, or (b)
$10,000.
In addition to the means test, the court may find that the
debtor’s filing was in bad faith or that the totality of the
circumstances demonstrates abuse. § 102.

CRS-4
Selected Provisions
S. 1920, as passed by the House, 108th
Congress, 2nd Session (2004)
Calculation of permissible
Expenses to be calculated as specified under the National
monthly living expenses
Standards and Local Standards, and the debtor’s actual
monthly expenses for the categories specified as Other
Necessary Expenses issued by the Internal Revenue
Service for the area in which the debtor resides. A debtor
may also subtract, if reasonably necessary, an allowance
of up to 5% of the IRS food and clothing categories.
Individualized expenses may include debts incurred to
protect the debtor’s family from domestic violence; actual
expenses for the care and support of nondependent,
elderly, ill or disabled household or family members;
private or public school tuition of up to $1,500 per year;
administrative expenses for chapter 13 candidates;
average monthly expenses for secured and priority debts;
actual expenses for housing and utilities, if reasonably
necessary; and, charitable contributions of up to 15% of
gross income.9
Dollar amounts will be adjusted at three-year intervals in
accordance with the Consumer Price Index. § 102.
To rebut the presumption
A debtor must demonstrate and justify “special
of abuse
circumstances” in order to adjust current monthly income
determination. § 102.
Safe harbor exemption
Only the judge, U.S. trustee or bankruptcy administrator
from the means test
may bring a substantial abuse motion if the debtor’s
current monthly income is less than the highest national or
the applicable State median family income.
No party may make a motion to convert the debtor to
chapter 13 if the debtor (and spouse combined) have a
monthly income equal to or less than the state median
household income reported by the Bureau of the Census.
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 (a)
25% of nonpriority unsecured debt or $6,000, whichever
is greater, or (b) $10,000. § 102.
9 Charitable contributions are permissible under current law, 11 U.S.C. § 707(b), and would
not be altered by the bill.

CRS-5
Selected Provisions
S. 1920, as passed by the House, 108th
Congress, 2nd Session (2004)
IRS Living Standards
A chapter 13 debtor’s “disposable income” which may be
applicable to chapter 13
directed to the repayment plan will be calculated in
reorganization plan
accordance with IRS Living Standards if the debtor meets
the applicable means test for state median family income.
A chapter 13 debtor may deduct from plan payments the
costs of health insurance; domestic support obligations;
charitable contributions of up to 15% of gross income; and
expenses necessary to operate a business.
§ 102.
Attorney sanctions for
If a panel trustee brings a successful motion for dismissal
improper motion
or conversion, counsel for the debtor may be liable to
reimburse the trustee for costs, attorneys’ fees, and
payment of a civil penalty if the court finds a violation of
Bankruptcy Rule 9011.
An attorney’s signature on the bankruptcy petition certifies
that the attorney has performed an investigation into the
circumstances that gave rise to the petition; that the
attorney has determined that the petition is well grounded
in fact and is warranted by existing law; and that the
attorney has no knowledge after an inquiry that the
information in accompanying schedules is incorrect. § 102.
Creditor sanctions for an
The court may award the debtor costs for contesting an
improper motion
unsuccessful motion to convert if the court finds that the
motion violated Rule 9011, or was intended to coerce the
debtor into waiving rights under the Bankruptcy Code. A
creditor whose claim is less than $1000 is not liable for
sanctions. § 102
Dismissal of filings by
A crime victim or party in interest may request dismissal
persons convicted of
of the voluntary bankruptcy case of the convicted
violent crimes or drug
debtor. The court must grant the dismissal unless the
trafficking
filing is necessary to satisfy a domestic support
obligation. § 102

CRS-6
Selected Provisions
S. 1920, as passed by the House, 108th
Congress, 2nd Session (2004)
Additional Consumer Provisions
Mandatory credit
Debtor must undergo credit counseling within 180 days of
counseling
filing, and may not obtain a discharge until completion of
a personal financial management instructional course.
The jurisdictional filing requirement may be waived for 30
to 45 days if the debtor certifies exigent circumstances or
was denied service from an approved counseling agency.
The U.S. trustee or bankruptcy administrator for the
judicial district is directed to oversee and approve
nonprofit budget and credit counseling agencies. § 106
Promotion of alternative
A creditor’s allowable claim may be reduced by 20% if a
dispute resolution
court finds that the creditor “unreasonably refused to
negotiate a reasonable alternative repayment schedule
proposed by an approved credit counseling agency that
provides repayment of at least 60% of the debt, and the
debtor can prove by “clear and convincing” evidence that
a creditor unreasonably refused to consider the offer.”
§ 201.
Reaffirmation agreements
Imposes enhanced requirements for approval of
a
reaffirmation agreement when the debtor is not
represented by counsel but exempts credit unions from
creditor disclosure requirements; requires U.S. Attorney
and FBI to investigate abusive reaffirmation practices. §
203.
Preserving defenses
Amends 11 U.S.C. § 363 to add a new subsection
against predatory lenders
preserving defenses that a party to a consumer credit
transaction may have if the contract is sold by a debtor in
bankruptcy. § 204.
GAO reaffirmation study
Requires a study of reaffirmation practices and a report to
Congress. § 205
Domestic support owed to
Would move domestic support obligations to first priority,
individuals and
which is currently allocated to administrative expenses of
government units made
the bankruptcy estate. Administrative expenses would
first priority
become second priority.
However, if a trustee is appointed under chapter 7, 11, 12,
or 13, the trustee’s expenses may be paid before domestic
support. § 212.
Trustee notification of
Would direct the trustee to notify a priority child support
child support claim
recipient of the existence of a state child support
holders
enforcement agency, and, upon discharge, the existence of
nondischargeable and reaffirmed debt. § 219.

CRS-7
Selected Provisions
S. 1920, as passed by the House, 108th
Congress, 2nd Session (2004)
Priority assigned to claims
A new § 507 tenth priority is created for unsecured claims
for liability incurred by
for liability incurred by a debtor from operating a vessel
the debtor DUI
while under the influence of alcohol or drugs. Claims of
this nature are also nondischargeable. § 223.
Retirement savings
Would clarify and expand the law to provide that
exemption broadened
retirement accounts that are tax exempt under the Internal
Revenue Code are exempted from the debtor’s estate up to
a $1,000,000 cap, which may be increased if “the interests
of justice so require.” § 224
Exemption for saving for
Subject to certain IRS requirements, excludes funds up to
postsecondary education
$5000 per specified beneficiary made within a year of
filing in an education individual retirement account and/or
any funds used to purchase a tuition credit or certificate
under a qualified state tuition program. §225
Protection of nonpublic
Prohibits the transfer by the debtor of personal customer
personal information and
information unless approved by the court. Provides for the
consumer privacy
appointment of a consumer privacy ombudsman if a debtor
ombudsman
wishes to sell or lease such information. §§ 231,232.
Prohibition on disclosure
Debtor may not be required to disclose the name of a
of identify of minor
minor child in public records. U.S. trustee or auditor may
children
have access to nonpublic records maintained by the court.
§ 233.
Lien stripping on security
Chapter 13 debtors would not be permitted to bifurcate
interests in consumer
security interests in an automobile purchased within 910
goods (cramdown)
days (2½ years) before the filing; or in other consumer
goods purchased within 1 year of the filing. § 306.

CRS-8
Selected Provisions
S. 1920, as passed by the House, 108th
Congress, 2nd Session (2004)
Homestead exemption
Definition of “debtor’s residence” includes mobile homes
or trailers. § 306.
Imposes lengthened residency requirements to qualify for
state exemption. § 307.
Reduces the value of the exemption if the value is
attributable to property that the debtor disposed of within
10 years of bankruptcy with the intent to hinder, delay or
defraud a creditor. § 308.
Debtors’ electing a state homestead exemption may not
exempt any interest acquired within 1215 days (3.3 years)
of filing which exceeds in the aggregate $125,000, unless
the value in excess of that amount occurs from a transfer
of residences within the same state. Exempts family
farmers from the limit. Limitations may not apply to
amounts reasonably necessary to support the debtor and
any dependents.
Imposes a firm $125,000 cap on individuals who are
convicted of specified felonies (including violations of
federal securities laws) or who commits criminal acts,
intentional torts, or willful or reckless misconduct that
caused serious physical injury or death within 5 years
preceding the bankruptcy filing. § 322.
Residential lease excepted
Adds new provisions permitting a landlord/lessor to
from the automatic stay
bypass the automatic stay to continue with a residential
eviction of a tenant/lessee. § 311
Restrictions on chapter 7
Extends time within which a debtor who has received a
and chapter 13 filings.
chapter 7 discharge may not receive another from 6 to 8
years.
Amends chapter 13 to disallow discharge if the debtor
filed under chapters 7, 11, or 12 within 4 years prior to the
13 filing, or under chapter 13, within 2 years of the
subsequent filing. § 312.
Definition of “household
Defines household goods to include clothing, furniture,
goods”
appliances, 1 radio, 1 television, 1 VCR, other electronic
entertainment equipment with a market value of under
$500, linens, china, crockery, kitchenware, educational
materials used by minor dependent children, medical
equipment and supplies, furniture used exclusively by
minors and disabled or elderly dependents, personal
effects, 1 personal computer and antiques and jewelry with
a value less than $500. § 313.

CRS-9
Selected Provisions
S. 1920, as passed by the House, 108th
Congress, 2nd Session (2004)
Debtor’s duty to disclose
Modifies debtor filing requirements under 11 U.S.C. § 521
tax filings.
to include federal tax returns. § 315.
Plan duration
Chapter 13 plans to have 5 year duration for families
whose monthly income is not less than the highest state
median family income. Families below the highest state
median income would have 3 year plans. § 318.
Wages withheld by an
Withheld wages for contributions to employee benefit
employer for contributions
plans would be excluded from the debtor (employer’s)
to employee benefit plans
estate. § 323.
Valuation of collateral
A secured creditor’s allowable claim would be the retail
cost to replace the item without deduction for costs of sale
or marketing. Personal property’s replacement value
would be the price a retail merchant would charge for like
items. § 327.
Wages and benefits
Makes specified prepetition and postpetition wages and
awarded as back pay
benefits awarded as back pay a high-priority
administrative expense. § 329.
Audits
The Attorney General is directed to establish a procedure
to ensure random audits of no less than 1 out 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. § 603.
Nondischargeable Consumer Debts
Debts to government units
Defines “domestic support obligation” to include debts
for domestic support
owed to or recoverable by a governmental unit. §§ 211,
215.
Expanded definition of
Adds qualified educational loans as defined under § 221 of
student loan
the IRC to those educational loans that are currently
nondischargeable. § 220.
Loan repayments to
Makes nondischargeable, i.e., allows an employer to
debtor’s retirement
continue to withhold loan repayments to debtor’s
savings or thrift plan
savings/retirement plan from debtor’s wages. § 224(c).
Consumer debts presumed Consumer debts owed to a single creditor for more than
fraudulent
$550 for “luxury goods” incurred within 90 days of filing;
and cash advances for more than $750 under an open end
credit plan within 70 days of filing are presumed to be
nondischargeable. § 310
Debts incurred to pay
Debts incurred to a third party to pay a tax to a state or
nondischargeable debts
local government unit become nondischargeable. § 314.
are nondischargeable

CRS-10
Selected Provisions
S. 1920, as passed by the House, 108th
Congress, 2nd Session (2004)
Expanded definition of
Expands the types of post-petition condo and homeowners
nondischargeable
association fees that are nondischargeable by omitting
condominium and
requirement that in order to be nondischargeable the
homeowners association
debtor must reside in the residence postpetition. § 412.
fees
FEC penalties
Fines and penalties under federal election law are made
nondischargeable
nondischargeable. § 1235.
Consumer Credit Disclosure
Amendments to the Truth
TILA amended to require enhanced minimum payment
in Lending Act
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; 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. §§ 1301-1306.
Study of bankruptcy
Comptroller General directed to study bankruptcy impact
impact of credit extended
of credit extensions to students in postsecondary school.
to dependent students
§ 1308
Consumer credit studies
The Board of Governors of the Federal Reserve would be
directed to study existing protections for consumers for
unauthorized use of a dual use debit card. § 1307

CRS-11
Selected Provisions
S. 1920, as passed by the House, 108th
Congress, 2nd Session (2004)
Business Bankruptcy
Avoidable preferences
Amends 11 U.S.C. § 547 to liberalize the rules for
defending against an avoidable transfer in the ordinary
course of business; creates a new preference exception to
aggregate transfers of less than $5,000. § 409.
Definition of disinterested
Amends 11 U.S.C. § 101(14) to eliminate investment
person
banker from the list of excluded persons.
Small business bankruptcy
Subtitle B of Title IV has provisions defining a “small
business” for chapter 11 purposes as one with debts under
$2,000,000. The debtor’s period of exclusivity to file a
reorganization plan is 180 days. A plan and disclosure
statement must be filed within 300 days of the initial
filing.
A plan must be confirmed within 45 days of filing in
bankruptcy. § 438
Provisions require establishment of uniform accounting
and reporting standards for small businesses. Grounds for
appointment of a trustee and the trustee’s general
supervisory duties are expanded, as are grounds for
dismissal or conversion of the case. §§ 431-442.
Trustee to appoint retiree
Amends 11 U.S.C. § 1114 to provide that in the event that
committees
a retiree committee is appointed, the appointment of
members will be made by the U.S. Trustee, not the court.
§ 447.
Chapter 11 corporate
Confirmation of a plan under chapter 11 would not
nondischargeability
discharge a corporate debtor from debts under 11 U.S.C.
§ 523(a)(2) that are owed to a domestic governmental unit
for property obtained by false pretenses or representations;
or owed to an individual under subchapter III of chapter 37
of Title 31, U.S.C.; or any debt for taxes for which the
debtor willfully attempted to evade or made a fraudulent
return. § 708.
Wage and employee
Cap on wage and employee benefit claims increased from
benefit claims
$4,650 to $10,000 and lengthens reachback period for
wage claims from 90 days to 180 days; and increases the
reachback period during which fraudulent transfers can be
rescinded from one to two years and provides that certain
compensation payments to a corporation’s insiders during
this two-year reachback period can be rescinded, under
certain circumstances; also requires the court to reinstate
retiree benefits that a corporate debtor modified within the
180-day period preceding the bankruptcy filing, unless the
balance of the equities justified the modification. §§ 1501-
1503.

CRS-12
Selected Provisions
S. 1920, as passed by the House, 108th
Congress, 2nd Session (2004)
Title X dealing with
Makes chapter 12 permanent, retroactive to the date on
chapter 12 family farmers
which chapter 12 was last in effect. Includes jurisdictional
debt limit in amount subject to readjustment in accordance
with CPI; subordinates certain high priority unsecured
claims owed to the government to nonpriority claims.
Measure to take effect upon enactment, but will not apply
to pending cases. §§ 1001-1003.
Raises jurisdictional debt limit of family farmers to
$3,000,000 and lowers percentage requirement of income
derived from farming and expands the time frame for
measuring farm income from one to three years. §§ 1004,
1005.
Prohibits retroactive assessment of disposable income.
§ 1006
Amends chapter 12 to include “family fishermen.”
§ 1007.
General Provisions
In forma pauperis filings
Directs the Judicial Conference to prescribe procedures for
waiving bankruptcy fees for an individual debtor under
chapter 7 whose income is less than 150% of the official
poverty line and who is unable to pay the fee in
installments. § 418.
Bankruptcy judgeships
Creates new temporary bankruptcy judgeships
for
designated districts. § 1223.
Procedure to certify
Establishes procedures to permit direct appeals from a
appeals from a bankruptcy
bankruptcy court to a court of appeals if the decision
court to a court of
involves a substantial question of law; a question requiring
appeals
resolution of conflicting decisions; or, a matter of public
importance. §1233.
Involuntary Bankruptcy
Makes technical corrections made to 11 U.S.C. § 303
dealing with involuntary bankruptcy. Measure applies
upon enactment, and to cases currently pending. § 1234.
General effective date
Subject to express provisions otherwise, the new law will
take effect 180 days after enactment and will not apply to
cases commenced before the effective date. § 1501.