S. 61Senate111th Congress (2009-2011)In Committee

Helping Families Save Their Homes in Bankruptcy Act of 2009

Introduced January 6, 2009

Legislative Activity

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2 earlier actions
SenateIntro Referral Latest Action

Read twice and referred to the Committee on the Judiciary. (text of measure as introduced: CR S66)

January 6, 2009

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SenateIntro Referral

Introduced in Senate

January 6, 2009

SenateIntro Referral

Sponsor introductory remarks on measure. (CR S64-66)

January 6, 2009

SenateIntro Referral

Read twice and referred to the Committee on the Judiciary. (text of measure as introduced: CR S66)

January 6, 2009

Floor Debate

20 members

What members said about S. 61 on the floor

11 Republicans9 Democrats
Dianne Feinstein
Sen. Dianne FeinsteinD-CA · Jan 6, 2009

Mr. President, I am pleased to join Senators Schumer, Snowe, and Boxer in introducing legislation to prohibit the selling and counterfeiting of tickets to the Presidential inaugural ceremony. The…

Daniel K. Inouye
Sen. Daniel K. InouyeD-HI · Jan 6, 2009

Mr. President, today I introduce the Clinical Social Workers' Recognition Act to correct a continuing problem in the Federal Employees Compensation Act. This bill will also provide clinical social…

John McCain
Sen. John McCainR-AZ · Jan 6, 2009

Mr. President, I am pleased to be joined by Senator Ensign in introducing the Abolishing Aviation Barriers Act of 2009. This bill would remove the arbitrary restrictions that prevent Americans from…

Herb Kohl
Sen. Herb KohlD-WI · Jan 6, 2009

Mr. President, I rise today to introduce the Generics First Act. This legislation requires the Federal Government's Medicare Part D prescription drug program to use generic drugs whenever available,…

Orrin G. Hatch
Sen. Orrin G. HatchR-UT · Dec 12, 2009

Mr. President, yesterday the administration's own Department of Health and Human Services health analysis warned Americans about the impact of this bill. According to the official scorekeepers at…

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Jeff Sessions
Sen. Jeff SessionsR-AL · Dec 12, 2009

Mr. President, the vote we had earlier this morning, moving forward onto the omnibus spending bill that is before us, is a stunning statement that we are not listening to the American people; that we…

Chuck Grassley
Sen. Chuck GrassleyR-IA · Dec 12, 2009

Madam President, I understand that maybe I will have my speech interrupted by a unanimous consent request from the leadership, so if that happens, I ask that my remarks be continuous throughout the…

Patrick J. Leahy
Sen. Patrick J. LeahyD-VT · Jan 6, 2009

Mr. Presdient, as we begin the 111th Congress, we will try, once again, to enact comprehensive immigration reforms that have eluded us in the past several years. With an administration that…

Sam Brownback
Sen. Sam BrownbackR-KS · Dec 12, 2009

Before my colleague leaves the floor, I wish to ask him a question or two if he wouldn't mind. He has been involved in most of the major health issues that have passed this body in the last 15 years.…

John F. Kerry
Sen. John F. KerryD-MA · Jan 6, 2009

Mr. President, it is my great hope that Congress will move this year to see that the successful, bipartisan State Children's Health Insurance Program, SCHIP, is allowed the opportunity to fulfill its…

Robert P. Casey Jr.
Sen. Robert P. Casey Jr.D-PA · Dec 12, 2009

Mr. President, I rise this afternoon to speak about health care and the bill that is on the Senate floor that we have been debating now for a number of days, the Patient Protection and Affordable…

John McCain
Sen. John McCainR-AZ · Dec 12, 2009

Madam President, I rise to speak on the pending bill before us, one of the great porkbarrel, earmark-filled pieces of legislation I have seen come before this body. I would like to quote from ABC…

Lisa Murkowski
Sen. Lisa MurkowskiR-AK · Dec 12, 2009

Mr. President, I appreciate the good Senator from Pennsylvania and his discussion and his clear and constant focus on children and children's health. I wish to commend him for his good work and for…

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Richard J. Durbin
Sen. Richard J. DurbinD-IL · Dec 12, 2009

Mr. President, let me congratulate my colleague from Oklahoma on 50 years of marriage. Your wife must be a saint. Mr. President, H.R. 3288 is a consolidated appropriations bill which contains almost…

John Cornyn
Sen. John CornynR-TX · Dec 12, 2009

Madam President, we are now considering a bill that represents a dramatic expansion in government spending, as the Senator from Arizona has so eloquently stated. This Omnibus appropriations bill…

Susan M. Collins
Sen. Susan M. CollinsR-ME · Dec 12, 2009

Mr. President, I rise today to discuss the conference report before us, which contains six of the seven remaining appropriations bills. Division D of the conference report contains the Financial…

Olympia J. Snowe
Sen. Olympia J. SnoweR-ME · Jan 6, 2009

Mr. President, I rise today to reintroduce a bill I offered last December that will provide much-needed relief to struggling families across America. The Unemployment Benefit Tax Suspension Act of…

Jon Kyl
Sen. Jon KylR-AZ · Dec 12, 2009

Mr. President, I want to speak for a moment about the vote we are about to take here to proceed with the so-called Omnibus Appropriations Act, H.R. 3288. This is the bill which for those who have not…

Joseph I. Lieberman
Sen. Joseph I. LiebermanD-CT · Jan 6, 2009

Mr. President, I am honored to have the opportunity today, obviously early on this first day of this new session of Congress, together with my colleague from Utah, Senator Hatch, to introduce…

Richard J. Durbin
Sen. Richard J. DurbinD-IL · Jan 6, 2009

Mr. President, as the 111th Congress begins, the most important item on our agenda is to help end the worst economic crisis America has faced since the Great Depression. I look forward to working…

Richard J. Durbin
Sen. Richard J. DurbinD-IL · Jan 6, 2009

Mr. President, as the 111th Congress begins, the most important item on our agenda is to help end the worst economic crisis America has faced since the Great Depression. I look forward to working…

Russell D. Feingold
Sen. Russell D. FeingoldD-WI · Jan 6, 2009

Mr. President, I would like to thank the senior Senator from Wisconsin for his hard work to address antitrust issues in the rail industry along with other industries as Chairman of the Antitrust,…

Orrin G. Hatch
Sen. Orrin G. HatchR-UT · Jan 6, 2009

Mr. President, as I did in the last Congress, I am cosponsoring the legislation introduced today by the Senator from Connecticut to provide a House seat for the District of Columbia and an additional…

Mitch McConnell
Sen. Mitch McConnellR-KY · Dec 12, 2009

Mr. President, I will proceed under my leader time. Mr. President, yesterday may well have been a seminal moment in this debate. We heard from CMS. And for those who do not know what that is, who may…

Bill Text

Latest available legislative text

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Introduced in SenateIssued January 6, 2009
        [Congressional Bills 111th Congress]
[From the U.S. Government Printing Office]
[S. 61 Introduced in Senate (IS)]

111th CONGRESS
1st Session
S. 61

To amend title 11 of the United States Code with respect to
modification of certain mortgages on principal residences, and for
other purposes.

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

January 6, 2009

Mr. Durbin (for himself, Mrs. Boxer, Mrs. Feinstein, Mr. Harkin, Mr.
Schumer, and Mr. Whitehouse) introduced the following bill; which was
read twice and referred to the Committee on the Judiciary

_______________________________________________________________________

A BILL

To amend title 11 of the United States Code with respect to
modification of certain mortgages on principal residences, and for
other purposes.

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Helping Families Save Their Homes in
Bankruptcy Act of 2009''.

SEC. 2. ELIGIBILITY FOR RELIEF.

Section 109 of title 11, United States Code, is amended--
(1) by adding at the end of subsection (e) the following:
``For purposes of this subsection, the computation of debts
shall not include the secured or unsecured portions of--
``(1) debts secured by the debtor's principal residence if
the current value of that residence is less than the secured
debt limit; or
``(2) debts secured or formerly secured by real property
that was the debtor's principal residence that was sold in
foreclosure or that the debtor surrendered to the creditor if
the current value of such real property is less than the
secured debt limit.''; and
(2) by adding at the end of subsection (h) the following:
``(5) The requirements of paragraph (1) shall not apply in a case
under chapter 13 with respect to a debtor who submits to the court a
certification that the debtor has received notice that the holder of a
claim secured by the debtor's principal residence may commence a
foreclosure on the debtor's principal residence.''.

SEC. 3. PROHIBITING CLAIMS ARISING FROM VIOLATIONS OF CONSUMER
PROTECTION LAWS.

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
inserting ``; or'', and
(3) by adding at the end the following:
``(10) the claim is subject to any remedy for damages or
rescission due to failure to comply with any applicable
requirement under the Truth in Lending Act, or any other
provision of applicable State or Federal consumer protection
law that was in force when the noncompliance took place,
notwithstanding the prior entry of a foreclosure judgment.''.

SEC. 4. AUTHORITY TO MODIFY CERTAIN MORTGAGES.

Section 1322(b) of title 11, United States Code, is amended--
(1) by redesignating paragraph (11) as paragraph (12),
(2) in paragraph (10) by striking ``and'' at the end, and
(3) by inserting after paragraph (10) the following:
``(11) notwithstanding paragraph (2) and otherwise
applicable nonbankruptcy law, with respect to a claim for a
loan secured by a security interest in the debtor's principal
residence that is the subject of a notice that a foreclosure
may be commenced, modify the rights of the holder of such
claim--
``(A) by providing for payment of the amount of the
allowed secured claim as determined under section
506(a)(1);
``(B) if any applicable rate of interest is
adjustable under the terms of such security interest by
prohibiting, reducing, or delaying adjustments to such
rate of interest applicable on and after the date of
filing of the plan;
``(C) by modifying the terms and conditions of such
loan--
``(i) to extend the repayment period for a
period that is no longer than the longer of 40
years (reduced by the period for which such
loan has been outstanding) or the remaining
term of such loan, beginning on the date of the
order for relief under this chapter; and
``(ii) to provide for the payment of
interest accruing after the date of the order
for relief under this chapter at an annual
percentage rate calculated at a fixed annual
percentage rate, in an amount equal to the then
most recently published annual yield on
conventional mortgages published by the Board
of Governors of the Federal Reserve System, as
of the applicable time set forth in the rules
of the Board, plus a reasonable premium for
risk; and
``(D) by providing for payments of such modified
loan directly to the holder of the claim; and''.

SEC. 5. COMBATING EXCESSIVE FEES.

Section 1322(c) of title 11, the United States Code, is amended--
(1) in paragraph (1) by striking ``and'' at the end,
(2) in paragraph (2) by striking the period at the end and
inserting a semicolon, and
(3) by adding at the end the following:
``(3) the debtor, the debtor's property, and property of
the estate are not liable for a fee, cost, or charge that is
incurred while the case is pending and arises from a debt that
is secured by the debtor's principal residence except to the
extent that--
``(A) the holder of the claim for such debt files
with the court (annually or, in order to permit filing
consistent with clause (ii), at such more frequent
periodicity as the court determines necessary) notice
of such fee, cost, or charge before the earlier of--
``(i) 1 year after such fee, cost, or
charge is incurred; or
``(ii) 60 days before the closing of the
case; and
``(B) such fee, cost, or charge--
``(i) is lawful under applicable
nonbankruptcy law, reasonable, and provided for
in the applicable security agreement; and
``(ii) is secured by property the value of
which is greater than the amount of such claim,
including such fee, cost, or charge;
``(4) the failure of a party to give notice described in
paragraph (3) shall be deemed a waiver of any claim for fees,
costs, or charges described in paragraph (3) for all purposes,
and any attempt to collect such fees, costs, or charges shall
constitute a violation of section 524(a)(2) or, if the
violation occurs before the date of discharge, of section
362(a); and
``(5) a plan may provide for the waiver of any prepayment
penalty on a claim secured by the debtor's principal
residence.''.

SEC. 6. CONFIRMATION OF PLAN.

Section 1325(a) of title 11, the United States Code, is amended--
(1) in paragraph (8) by striking ``and'' at the end,
(2) in paragraph (9) by striking the period at the end and
inserting a semicolon, and
(3) by inserting after paragraph (9) the following:
``(10) notwithstanding subclause (I) of paragraph
(5)(B)(i), the plan provides that the holder of a claim whose
rights are modified pursuant to section 1322(b)(11) retain the
lien until the later of--
``(A) the payment of such holder's allowed secured
claim; or
``(B) discharge under section 1328; and
``(11) the plan modifies a claim in accordance with section
1322(b)(11), and the court finds that such modification is in
good faith.''.

SEC. 7. DISCHARGE.

Section 1328 of title 11, the United States Code, is amended--
(1) in subsection (a)--
(A) by inserting ``(other than payments to holders
of claims whose rights are modified under section
1322(b)(11)'' after ``paid'' the 1st place it appears,
and
(B) in paragraph (1) by inserting ``or, to the
extent of the unpaid portion of an allowed secured
claim, provided for in section 1322(b)(11)'' after
``1322(b)(5)'', and
(2) in subsection (c)(1) by inserting ``or, to the extent
of the unpaid portion of an allowed secured claim, provided for
in section 1322(b)(11)'' after ``1322(b)(5)''.

SEC. 8. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

(a) Effective Date.--Except as provided in subsection (b), this Act
and the amendments made by this Act shall take effect on the date of
the enactment of this Act.
(b) Application of Amendments.--The amendments made by this Act
shall apply with respect to cases commenced under title 11 of the
United States Code before, on, or after the date of the enactment of
this Act.
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