Page:United States Statutes at Large Volume 119.djvu/48

 119 STAT. 30

PUBLIC LAW 109–8—APR. 20, 2005 ‘‘(A) whether the debtor filed the petition in bad faith; or ‘‘(B) the totality of the circumstances (including whether the debtor seeks to reject a personal services contract and the financial need for such rejection as sought by the debtor) of the debtor’s financial situation demonstrates abuse. ‘‘(4)(A) The court, on its own initiative or on the motion of a party in interest, in accordance with the procedures described in rule 9011 of the Federal Rules of Bankruptcy Procedure, may order the attorney for the debtor to reimburse the trustee for all reasonable costs in prosecuting a motion filed under section 707(b), including reasonable attorneys’ fees, if— ‘‘(i) a trustee files a motion for dismissal or conversion under this subsection; and ‘‘(ii) the court— ‘‘(I) grants such motion; and ‘‘(II) finds that the action of the attorney for the debtor in filing a case under this chapter violated rule 9011 of the Federal Rules of Bankruptcy Procedure. ‘‘(B) If the court finds that the attorney for the debtor violated rule 9011 of the Federal Rules of Bankruptcy Procedure, the court, on its own initiative or on the motion of a party in interest, in accordance with such procedures, may order— ‘‘(i) the assessment of an appropriate civil penalty against the attorney for the debtor; and ‘‘(ii) the payment of such civil penalty to the trustee, the United States trustee (or the bankruptcy administrator, if any). ‘‘(C) The signature of an attorney on a petition, pleading, or written motion shall constitute a certification that the attorney has— ‘‘(i) performed a reasonable investigation into the circumstances that gave rise to the petition, pleading, or written motion; and ‘‘(ii) determined that the petition, pleading, or written motion— ‘‘(I) is well grounded in fact; and ‘‘(II) is warranted by existing law or a good faith argument for the extension, modification, or reversal of existing law and does not constitute an abuse under paragraph (1). ‘‘(D) The signature of an attorney on the petition shall constitute a certification that the attorney has no knowledge after an inquiry that the information in the schedules filed with such petition is incorrect. ‘‘(5)(A) Except as provided in subparagraph (B) and subject to paragraph (6), the court, on its own initiative or on the motion of a party in interest, in accordance with the procedures described in rule 9011 of the Federal Rules of Bankruptcy Procedure, may award a debtor all reasonable costs (including reasonable attorneys’ fees) in contesting a motion filed by a party in interest (other than a trustee or United States trustee (or bankruptcy administrator, if any)) under this subsection if— ‘‘(i) the court does not grant the motion; and ‘‘(ii) the court finds that— ‘‘(I) the position of the party that filed the motion violated rule 9011 of the Federal Rules of Bankruptcy Procedure; or

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