Page:United States Statutes at Large Volume 119.djvu/45

 PUBLIC LAW 109–8—APR. 20, 2005

119 STAT. 27

Sec. 1309. Clarification of clear and conspicuous. Sec. Sec. Sec. Sec. Sec. Sec.

TITLE XIV—PREVENTING CORPORATE BANKRUPTCY ABUSE 1401. Employee wage and benefit priorities. 1402. Fraudulent transfers and obligations. 1403. Payment of insurance benefits to retired employees. 1404. Debts nondischargeable if incurred in violation of securities fraud laws. 1405. Appointment of trustee in cases of suspected fraud. 1406. Effective date; application of amendments.

TITLE XV—GENERAL EFFECTIVE DATE; APPLICATION OF AMENDMENTS Sec. 1501. Effective date; application of amendments. Sec. 1502. Technical corrections.

TITLE I—NEEDS-BASED BANKRUPTCY SEC. 101. CONVERSION.

Section 706(c) of title 11, United States Code, is amended by inserting ‘‘or consents to’’ after ‘‘requests’’. SEC. 102. DISMISSAL OR CONVERSION.

(a) IN GENERAL.—Section 707 of title 11, United States Code, is amended— (1) by striking the section heading and inserting the following: ‘‘§ 707. Dismissal of a case or conversion to a case under chapter 11 or 13’’; and (2) in subsection (b)— (A) by inserting ‘‘(1)’’ after ‘‘(b)’’; (B) in paragraph (1), as so redesignated by subparagraph (A) of this paragraph— (i) in the first sentence— (I) by striking ‘‘but not at the request or suggestion of’’ and inserting ‘‘trustee (or bankruptcy administrator, if any), or’’; (II) by inserting ‘‘, or, with the debtor’s consent, convert such a case to a case under chapter 11 or 13 of this title,’’ after ‘‘consumer debts’’; and (III) by striking ‘‘a substantial abuse’’ and inserting ‘‘an abuse’’; and (ii) by striking the next to last sentence; and (C) by adding at the end the following: ‘‘(2)(A)(i) In considering under paragraph (1) whether the granting of relief would be an abuse of the provisions of this chapter, the court shall presume abuse exists if the debtor’s current monthly income reduced by the amounts determined under clauses (ii), (iii), and (iv), and multiplied by 60 is not less than the lesser of— ‘‘(I) 25 percent of the debtor’s nonpriority unsecured claims in the case, or $6,000, whichever is greater; or ‘‘(II) $10,000. ‘‘(ii)(I) The debtor’s monthly expenses shall be the debtor’s applicable monthly expense amounts specified under the National 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

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