To protect servicemembers and veterans from means testing in bankruptcy, to disallow certain claims by lenders charging usurious interest rates to servicemembers, and to allow servicemembers to exempt property based on the law of the State of their premilitary residence.

SA 16. Mr. DURBIN (for himself, Ms. Stabenow, Mr. Bayh, Ms. Landrieu,
Mr. Leahy, Mr. Levin, Mr. Schumer, Ms. Cantwell, Mr. Nelson of Florida,
Mr. Kennedy, Mr. Kerry, Mrs. Clinton, and Ms. Mikulski) proposed an
amendment to the bill S. 256, to amend title 11 of the United States
Code, and for other purposes; as follows:

On page 13, between lines 13 and 14, insert the following:
``(D) Subparagraphs (A) through (C) shall not apply, and
the court may not dismiss or convert a case based on any form
of means testing, if--
``(i) the debtor or the debtor's spouse is a servicemember
(as defined in section 101 of the Servicemembers Civil Relief
Act (50 App. U.S.C. 511(1)));
``(ii) the debtor or the debtor's spouse is a veteran (as
defined in section 101(2) of title 38, United States Code);
or
``(iii) the debtor's spouse dies while in military service
(as defined in section 101(2) of the Servicemembers Civil
Relief Act (50 App. U.S.C. 511(2))).
On page 67, between lines 18 and 19, insert the following:

SEC. 206. DISALLOWANCE OF CLAIMS FILED ON HIGH-COST PAYDAY
LOANS MADE TO SERVICEMEMBERS.

(a) In General.--Section 502(b) of title 11, United States
Code, is amended--
(1) in paragraph (8), by striking ``or'' at the end;
(2) in paragraph (9), by striking the period at the end;
and
(3) by adding at the end the following:
``(10) such claim results from an assignment (including a
loan or an agreement to deposit military pay into a joint
account from which another person may make withdrawals,
except when the assignment is for the benefit of a spouse or
dependent of the debtor) of the debtor's right to receive--
``(A) military pay made in violation of section 701(c) of
title 37; or
``(B) military pension or disability benefits made in
violation of section 5301(a) of title 38; or
``(11) such claim is based on a debt of a servicemember or
a dependent of a servicemember that--
``(A) is secured by, or conditioned upon--
``(i) a personal check held for future deposit; or
``(ii) electronic access to a bank account; or

[[Page S1879]]

``(B) requires the payment of interest, fees, or other
charges that would cause the annual percentage rate (as
defined by section 107 of the Truth in Lending Act (15 U.S.C.
1606)) on the obligation to exceed 36 percent.''.
(b) Conforming Amendment.--Section 523 of title 11, United
States Code, is amended by adding at the end the following:
``(f) Notwithstanding paragraphs (2), (4), and (6) of
subsection (a), a debt is dischargeable in a case under this
title if it is based on an assignment of the debtor's right
to receive--
``(1) military pay made in violation of section 701(c) of
title 37; or
``(2) military pension or disability benefits made in
violation of section 5301(a) of title 38.''.

On page 132, between lines 5 and 6, insert the following:

SEC. 234. PROTECTION OF SERVICEMEMBERS' PROPERTY IN
BANKRUPTCY.

(a) In General.--Section 522(b) of title 11, United States
Code, as amended by section 224, is further amended--
(1) in paragraph (1), as redesignated, by striking ``either
paragraph (2) or, in the alternative, paragraph (3) of this
subsection'' and inserting ``paragraph (2), (3), or (4)'';
(2) by redesignating paragraph (4), as added by this Act,
as paragraph (5); and
(3) by inserting after paragraph (3), as redesignated, the
following:
``(4) If the debtor is a servicemember or the dependent of
a servicemember, and the date of the filing of the petition
is during, or not later than 1 year after, a period of
military service by the servicemember, property listed in
this paragraph is--
``(A) property that is specified under subsection (d),
notwithstanding any State law that prohibits such exemptions;
or
``(B) property that the debtor could have exempted if the
debtor had been domiciled in the State of the debtor's
premilitary residence for a sufficient period to claim the
exemptions allowed by that State.''.
(b) Definitions.--Section 101 of title 11, United States
Code, is amended--
(1) by inserting after paragraph (13A), as added by this
Act, the following:
``(13B) `dependent', with respect to a servicemember,
means--
``(A) the servicemember's spouse;
``(B) the servicemember's child (as defined in section
101(4) of title 38); or
``(C) an individual for whom the servicemember provided
more than 50 percent of the individual's support during the
180-day period immediately before the petition;'';
(2) by inserting after paragraph (39A), as added by this
Act, the following:
``(39B) `military service' means--
``(A) in the case of a servicemember who is a member of the
Army, Navy, Air Force, Marine Corps, or Coast Guard--
``(i) active duty (as defined in section 101(d)(1) of title
10); and
``(ii) in the case of a member of the National Guard of the
United States, service under a call to active service
authorized by the President or the Secretary of Defense for a
period of more than 30 consecutive days under section 502(f)
of title 32, for purposes of responding to a national
emergency declared by the President and supported by Federal
funds;
``(B) in the case of a servicemember who is a commissioned
officer of the Public Health Service or the National Oceanic
and Atmospheric Administration, active service; and
``(C) any period during which a servicemember is absent
from duty on account of sickness, wounds, leave, or other
lawful cause;'';
(3) by inserting after paragraph (40B), as added by this
Act, the following:
``(40C) `period of military service' means the period
beginning on the date on which a servicemember enters
military service and ending on the date on which the
servicemember--
``(A) is released from military service; or
``(B) dies while in military service;''; and
(4) by inserting after paragraph (51D), as added by this
Act, the following:
``(51E) `servicemember' means a member of the uniformed
services (as defined in section 101(a)(5) of title 10;''.
On page 191, between lines 11 and 12, insert the following:

SEC. 322A. EXEMPTION FOR SERVICEMEMBERS.

Section 522 of title 11, United States Code, as amended by
sections 224, 308, and 322, is further amended by adding at
the end the following:
``(r) If the debtor or the spouse of the debtor is a
servicemember (as defined in section 101 of the
Servicemembers Civil Relief Act (50 U.S.C. App. 511(1))) or a
veteran (as defined in section 101(2) of title 38, United
States Code) or the spouse of the debtor dies while in
military service (as defined in section 101(2) of the
Servicemembers Civil Relief Act (50 U.S.C. App. 511(2))), and
the debtor or the spouse of the debtor elects to exempt
property--
``(1) under subsection (b)(2), the debtor may, in lieu of
the exemption provided under subsection (d)(1), exempt the
debtor's aggregate interest, not to exceed $75,000 in value,
in--
``(A) real property or personal property that the debtor or
a dependent of the debtor uses as a residence;
``(B) a cooperative that owns property that the debtor or a
dependent of the debtor uses as a residence; or
``(C) a burial plot for the debtor or a dependent of the
debtor; or
``(2) under subsection (b)(3), and the exemption provided
under applicable law that may be applied to such property is
for less than $75,000 in value, the debtor may, in lieu of
such exemption, exempt the debtor's aggregate interest, not
to exceed $75,000 in value, in any property described in
subparagraph (A), (B), or (C) of paragraph (1).''.
______