[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4711 Introduced in House (IH)]
103d CONGRESS
2d Session
H. R. 4711
To amend title 11 of the United States Code with respect to certain
debts in connection with divorce or separation; to establish a
commission to analyze bankruptcy issues; and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 30, 1994
Ms. Slaughter introduced the following bill; which was referred to the
Committee on the Judiciary
_______________________________________________________________________
A BILL
To amend title 11 of the United States Code with respect to certain
debts in connection with divorce or separation; to establish a
commission to analyze bankruptcy issues; and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
TITLE I--AMENDMENTS TO TITLE 11 OF THE UNITED STATES CODE
SEC 101. SHORT TITLE.
This title may be cited as the ``Spousal Equity in Bankruptcy
Amendments of 1994''.
SEC. 102. AMENDMENTS.
(a) Relief From Automatic Stay.--Section 362(b)(2) of title 11,
United States Code, is amended to read as follows:
``(2) under subsection (a) of this section--
``(A) of the commencement or continuation of an
action or proceeding for--
``(i) the establishment of paternity; or
``(ii) the establishment or modification of
an order for alimony, maintenance, or support;
or
``(B) of the collection of alimony, maintenance, or
support from property that is not property of the
estate;''.
(b) Priority of Claims.--(1) Section 507 of title 11, United States
Code, is amended--
(A) in subsection (a)--
(i) in paragraph (8) by striking ``(8) Eighth'' and
inserting ``(9) Ninth'',
(ii) in paragraph (7) by striking ``(7) Seventh''
and inserting ``(8) Eighth'', and
(iii) by inserting after paragraph (6) the
following:
``(7) Seventh, allowed unsecured claims due to a spouse,
former spouse, or child of the debtor for alimony to,
maintenance for, or support of such spouse or child, in
connection with a separation agreement, divorce decree, or
other order of a court of record, a determination made in
accordance with State or territorial law by a governmental
unit, or a property settlement agreement, but not to the extent
that--
``(A) such debt is assigned to another entity,
voluntarily, by operation of law, or otherwise (other
than debts assigned pursuant to section 402(a)(26) of
the Social Security Act, or any such debt which has
been assigned to the Federal Government or to a State
or any political subdivision of such State); or
``(B) such debt includes a liability designated as
alimony, maintenance, or support, unless such liability
is actually in the nature of alimony, maintenance or
support;'', and
(B) in subsection (d) by striking ``or (6)'' and inserting
``(6), or (7)''.
(2) Title 11 of the United States Code is amended--
(A) in sections 502(i), 503(b)(1)(B)(i), 523(a)(1)(A), and
1123(a)(1) by striking ``507(a)(7)'' and inserting
``507(a)(8)'',
(B) in section 724(b)(2) by striking ``or 507(a)(6)'' and
inserting ``507(a)(6), or 507(a)(7)'',
(C) in section 726(b) by striking ``or (7)'' and inserting
``, (7), or (8)'', and
(D) in section 1129(a)(9)--
(i) in subparagraph (B) by striking ``or
507(a)(6)'' and inserting ``, 507(a)(6), or
507(a)(7)'', and
(ii) in subparagraph (C) by striking ``507(a)(7)''
and inserting ``507(a)(8)''.
(c) Protection of Liens.--Section 522(f)(1) of title 11, United
States Code, is amended to read as follows:
``(1) a judicial lien (other than a judicial lien that
secures a debt to a spouse, former spouse, or child of the
debtor, for alimony to, maintenance for, or support of the
spouse or child, in connection with a separation agreement,
divorce decree or other order of a court of record,
determination made in accordance with State or territorial law
by a governmental unit, or property settlement agreement, to
the extent that the debt--
``(A) is not assigned to another entity,
voluntarily, by operation of law, or otherwise; and
``(B) includes a liability designated as alimony,
maintenance, or support, unless such liability is
actually in the nature of alimony, maintenance or
support).''.
(d) Exception to Discharge.--Section 523 of title 11, United States
Code, is amended--
(1) in subsection (a)--
(A) in paragraph (11) by striking ``or'' at the
end,
(B) in paragraph (12) by inserting ``or'' after the
semicolon at the end, and
(C) by adding at the end the following:
``(13) assumed or incurred by the debtor in the course of a
divorce or separation or in connection with a separation
agreement, divorce decree or other order of a court of record,
a determination made in accordance with State or territorial
law by a governmental unit, or property settlement agreement,
unless--
``(A) excepting such debt from discharge under this
paragraph would impose an undue hardship for the
debtor; and
``(B) discharging such debt would result in a
benefit to the debtor that outweighs the detrimental
consequences to a spouse, former spouse, or child of
the debtor.'', and
(2) in subsection (c)(1) by striking ``or (6)'' each place
it appears and inserting ``, or (13)''.
(e) Protection Against Trustee Avoidance.--Section 547(c) of title
11, United States Code, is amended--
(1) by striking ``or'' at the end of paragraph (6);
(2) by redesignating paragraph (7) as paragraph
(8); and
(3) by inserting after paragraph (6) the following
new paragraph:
``(7) to the extent that the transfer was a bona fide
payment of a debt to a spouse, former spouse, or child of the
debtor, for alimony to, maintenance for, or support of such
spouse or child, in connection with a separation agreement,
divorce decree or other order of a court of record,
determination made in accordance with State or territorial law
by a governmental unit, or property settlement agreement, but
not to the extent that such debt--
``(A) is assigned to another entity, voluntarily,
by operation of law, or otherwise; or
``(B) includes a liability designated as alimony,
maintenance, or support, unless such liability is
actually in the nature of alimony, maintenance or
support; or''.
(f) Appearance Before Court.--A child support creditor or its
representative shall be permitted to appear and intervene without
charge and without meeting any special local court rule requirement for
attorney appearances in any bankruptcy proceeding in any bankruptcy
court or district court of the United States if the creditor or
representative files with the court a statement describing in detail
the child support debt, its status, and other characteristics.
TITLE II--BANKRUPTCY REVIEW COMMISSION
SEC. 201. SHORT TITLE.
This title may be cited as the ``National Bankruptcy Review
Commission Act''.
SEC. 202. ESTABLISHMENT.
There is established the National Bankruptcy Review Commission
(referred to as the ``Commission'').
SEC. 203. DUTIES OF THE COMMISSION.
The duties of the Commission are--
(1) to investigate and study issues and problems relating
to title 11, United States Code (commonly known as the
``Bankruptcy Code'');
(2) to evaluate the advisability of proposals and current
arrangements with respect to such issues and problems;
(3) to prepare and submit to the Congress, the Chief
Justice, and the President a report in accordance with section
208;
(4) to solicit divergent views of all parties concerned
with the operation of the bankruptcy system; and
(5) to study the impact of the bankruptcy laws on the
family and particularly on the increase in the number of women
and children living in poverty after divorce.
SEC. 204. MEMBERSHIP.
(a) Number and Appointment.--The Commission shall be composed of 10
members appointed from among individuals who have experience and
expertise in bankruptcy law as follows:
(1) Four members appointed by the President, one of whom
shall be designated as chairman by the President.
(2) One member shall be appointed by the President pro
tempore of the Senate.
(3) One member shall be appointed by the Minority Leader of
the Senate.
(4) One member shall be appointed by the Speaker of the
House of Representatives.
(5) One member shall be appointed by the Minority Leader of
the House of Representatives.
(6) Two members appointed by the Chief Justice.
(b) Term.--Members of the Commission shall be appointed for the
life of the Commission.
(c) Quorum.--Six members of the Commission shall constitute a
quorum, but a lesser number may conduct meetings.
(d) Appointment Deadline.--The first appointments made under
subsection (a) shall be made within 60 days after the date of enactment
of this Act.
(e) First Meeting.--The first meeting of the Commission shall be
called by the chairman and shall be held within 90 days after the date
of enactment of this Act.
(f) Vacancy.--A vacancy on the Commission resulting from the death
or resignation of a member shall not affect its powers and shall be
filled in the same manner in which the original appointment was made.
(g) Continuation of Membership.--If any member of the Commission
who was appointed to the Commission as a member of Congress or as an
officer or employee of a government leaves that office, or if any
member of the Commission who was not appointed in such a capacity
becomes an officer or employee of a government, the member may continue
as a member of the Commission for not longer than the 90-day period
beginning on the date the member leaves that office or becomes such an
officer or employee, as the case may be.
(h) Consultation Prior to Appointment.--Prior to the appointment of
members of the Commission, the President, the President pro tempore of
the Senate, the Speaker of the House of Representatives, and the Chief
Justice shall consult with each other to ensure fair and equitable
representation of various points of view in the Commission and its
staff.
SEC. 205. COMPENSATION OF THE COMMISSION.
(a) Pay.--
(1) Nongovernment employees.--Each member of the Commission
who is not otherwise employed by the United States Government
shall be entitled to receive the daily equivalent of the annual
rate of basic pay payable for level IV of the Executive
Schedule under section 5315 of title 5, United States Code, for
each day (including travel time) during which he or she is
engaged in the actual performance of duties as a member of the
Commission.
(2) Government employees.--A member of the Commission who
is an officer or employee of the United States Government shall
serve without additional compensation.
(b) Travel.--Members of the Commission shall be reimbursed for
travel, subsistence, and other necessary expenses incurred by them in
the performance of their duties.
SEC. 206. STAFF OF COMMISSION; EXPERTS AND CONSULTANTS.
(a) Staff.--
(1) Appointment.--The chairman of the Commission may,
without regard to the civil service laws and regulations,
appoint, and terminate an executive director and such other
personnel as are necessary to enable the Commission to perform
its duties. The employment of an executive director shall be
subject to confirmation by the Commission.
(2) Compensation.--The chairman of the Commission may fix
the compensation of the executive director and other personnel
without regard to the provisions of chapter 51 and subchapter
II of chapter 53 of title 5, United States Code, relating to
classification of positions and General Schedule pay rates,
except that the rate of pay for the executive director and
other personnel may not exceed the rate payable for level V of
the Executive Schedule under section 5316 of that title.
(b) Experts and Consultants.--The Commission may procure temporary
and intermittent services of experts and consultants under section
3109(b) of title 5, United States Code.
SEC. 207. POWERS OF THE COMMISSION.
(a) Hearings and Meetings.--The Commission or, on authorization of
the Commission, a member of the Commission, may hold such hearings, sit
and act at such time and places, take such testimony, and receive such
evidence, as the Commission considers appropriate. The Commission or a
member of the Commission may administer oaths or affirmations to
witnesses appearing before it.
(b) Official Data.--The Commission may secure directly from any
Federal department, agency, or court information necessary to enable it
to carry out this title. Upon request of the chairman of the
Commission, the head of a Federal department or agency or chief judge
of a Federal court shall furnish such information, consistent with law,
to the Commission.
(c) Facilities and Support Services.--The Administrator of General
Services shall provide to the Commission on a reimbursable basis such
facilities and support services as the Commission may request. Upon
request of the Commission, the head of a Federal department or agency
may make any of the facilities or services of the agency available to
the Commission to assist the Commission in carrying out its duties
under this title.
(d) Expenditures and Contracts.--The Commission or, on
authorization of the Commission, a member of the Commission may make
expenditures and enter into contracts for the procurement of such
supplies, services, and property as the Commission or member considers
appropriate for the purposes of carrying out the duties of the
Commission. Such expenditures and contracts may be made only to such
extent or in such amounts as are provided in appropriation Acts.
(e) Mails.--The Commission may use the United States mails in the
same manner and under the same conditions as other Federal departments
and agencies of the United States.
(f) Gifts.--The Commission may accept, use, and dispose of gifts or
donations of services or property.
SEC. 208. REPORT.
The Commission shall submit to the Congress, the Chief Justice, and
the President a report not later than 2 years after the date of its
first meeting. The report shall contain a detailed statement of the
findings and conclusions of the Commission, together with its
recommendations for such legislative or administrative action as it
considers appropriate.
SEC. 209. TERMINATION.
The Commission shall cease to exist on the date that is 30 days
after the date on which it submits its report under section 208.
SEC. 410. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated $1,500,000 to carry out this
title.
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