To modify the bill to protect families, and for other purposes.

SA 67. Mr. DODD submitted an amendment intended to be proposed by him
to the bill S. 256, to amend title 11 of the United States Code, and
for other purposes; as follows:

At the end of the bill, add the following:

TITLE XVI--MODIFICATIONS FOR THE PROTECTION OF FAMILIES

SEC. 1601. MODIFICATIONS FOR THE PROTECTION OF FAMILIES.

(a) Dismissal or Conversion.--Section 707(b)(2)(A)(ii) of
title 11, United States Code, as amended by this Act, is
further amended--
(1) in subclause (IV), by striking ``$1,500'' and inserting
``$5,000''; and
(2) by adding at the end the following:
``(VI) In addition, the debtor's monthly expenses shall
include--
``(aa) taxes and mandatory withholdings from wages;
``(bb) alimony, child, and spousal support payments;
``(cc) legal fees necessary for the debtor's case;
``(dd) pension payments;
``(ee) religious and charitable contributions;
``(ff) union dues;
``(gg) other expenses necessary for the operation of a
business of the debtor or for the debtor's employment;
``(hh) ownership costs for 1 motor vehicle (or 2 in the
case of a joint filing), determined in accordance with
Internal Revenue Service transportation standards, reduced by
any payments on debts secured by the motor vehicle or vehicle
lease payments made by the debtor;
``(ii) expenses for children's toys and recreation for
children of the debtor, tax credits for earned income
determined under section 32 of the Internal Revenue Code of
1986; and
``(jj) miscellaneous and emergency expenses.''.
(b) Definition of Current Monthly Income.--Section
101(10A)(B) of title 11, United States Code, as amended by
this Act, is further amended by inserting ``payments received
as domestic spousal obligations,'' after ``Social Security
Act,''.
(c) Property of the Estate.--Section 541 of title 11,
United States Code, as amended by this Act, is further
amended--
(1) in subsection (a)(5)(B) by inserting ``except as
provided under subsection (b)(11),'' before ``as a result'';
and
(2) in subsection (b)--
(A) in paragraph (8), by striking ``or'' after the
semicolon;
(B) in paragraph (9), by striking the period at the end and
inserting a semicolon; and
(C) by inserting after paragraph (9) the following:
``(10) any--
``(A) refund of tax due to the debtor under subtitle A of
the Internal Revenue Code of 1986 for any taxable year to the
extent that the refund does not exceed the amount of an
applicable earned income tax credit allowed under section 32
of such Code for such year and the amount of an applicable
child tax credit allowed under section 24 of such Code for
such year; and
``(B) advance payment for an earned income tax credit
described in subparagraph (A); or
``(11) the right of the debtor to receive domestic spousal
obligations for the debtor or dependent of the debtor.''.
(d) Protection of Earned Income Tax Credit and Support
Payments Under Bankruptcy Repayment Plans in Chapter 12.--
Section 1225(b) of title 11, United States Code, as amended
by this Act, is further amended by adding at the end the
following:
``(3) In determining disposable income, the court shall not
consider amounts the debtor receives or is entitled to
receive from--
``(A) any refund of tax due to the debtor under subtitle A
of the Internal Revenue Code of 1986 for any taxable year to
the extent that the refund does not exceed the amount of an
applicable earned income tax credit allowed under section 32
of the Internal Revenue Code of 1986 for such year and the
amount of an applicable child tax credit allowed under
section 24 of such Code for such year;
``(B) any advance payment for an earned income tax credit
described in subparagraph (A); or
``(C) child support, foster care, or disability payment for
the care of a dependent child in accordance with applicable
nonbankruptcy law.''.
(e) Protection of Earned Income Tax Credit and Support
Payments Under Bankruptcy Repayment Plans in Chapter 13.--
Section 1325(b) of title 11, United States Code, as amended
by this Act, is further amended by adding at the end the
following:
``(5) In determining disposable income, the court shall not
consider amounts the debtor receives or is entitled to
receive from--
``(A) any refund of tax due to the debtor under subtitle A
of the Internal Revenue Code of 1986 for any taxable year to
the extent that the refund does not exceed the amount of an
applicable earned income tax credit allowed by section 32 of
the Internal Revenue Code of 1986 for such year and the
amount of an applicable child tax credit allowed under
section 24 of such Code for such year;
``(B) any advance payment for an earned income tax credit
described in subparagraph (A); or
``(C) child support, foster care, or disability payment for
the care of a dependent child in accordance with applicable
nonbankruptcy law.''.
(f) Exemptions.--Section 522(d)(10) of title 11, United
States Code, as amended by this Act, is further amended--
(1) in subparagraph (C), by inserting ``or'' after the
semicolon;
(2) by striking subparagraph (D); and
(3) by striking ``(E)'' and inserting ``(D)''.
(g) Personal Property.--
(1) Section 521.--Section 521(a)(6) of title 11, United
States Code, as amended by this Act, is further amended by
striking ``of personal property'' and inserting ``of an item
of personal property purchased for more than $3,000''.
(2) Section 362.--Section 362(h)(1) of title 11, United
States Code, as amended by this Act, is further amended by
striking ``to personal property'' and inserting ``to an item
of personal property purchased for more than $3,000''.

[[Page S2175]]

(h) Restoring the Foundation for Secured Credit.--Section
1325(a) of title 11, United States Code, as amended by this
Act, is further amended in the flush matter at the end by
striking ``if the debt was incurred'' and inserting ``to the
extent that the debt was incurred to purchase that thing of
value''.
(i) Household Goods.--
(1) Definition.--Section 101 of title 11, United States
Code, as amended by this Act, is further amended--
(A) by redesignating paragraph (27A) as paragraph (27B);
and
(B) by inserting before paragraph (27B) the following:
``(27A) `household goods '--
``(A) includes tangible personal property normally found in
or around a residence; and
``(B) does not include motor vehicles used for
transportation purposes;''.
(2) For purposes of section 522.--Section 522(f) of title
11, United States Code, as amended by this Act, is further
amended by striking paragraph (4).
(j) Limitation on Luxury Goods.--Section 523(a)(2)(C)(i) of
title 11, United States Code, as amended by this Act, is
further amended--
(1) in subclause (I)--
(A) by striking ``$500'' and inserting ``$1,000'';
(B) by striking ``90'' and inserting ``70''; and
(C) by inserting ``if the creditor proves by a
preponderance of the evidence at a hearing that the goods or
services were not reasonably necessary for the maintenance or
support of the debtor or the dependents of the debtor'' after
``nondischargeable''; and
(2) in subclause (II)--
(A) by striking ``$750'' and inserting ``$1,225''; and
(B) by striking ``70'' and inserting ``60''.
(k) Exceptions to Discharge.--Section 523 of title 11,
United States Code, as amended by this Act, is further
amended--
(1) in subsection (c), by inserting ``or (14)(A),'' after
``or (6)'' each place it appears; and
(2) in subsection (d), by striking ``(a)(2)'' and inserting
``(a)(2) or (14A)''.
______