To amend title 11 of the United States Code to provide relief with respect to disaster-related debts incurred by victims of Hurricane Katrina and other natural disasters.

September 8, 2005

Mr. CONYERS (for himself, Mr. WATT, Ms. JACKSON-LEE of Texas, Mr. NADLER, Mr. TAYLOR of Mississippi, Mr. KUCINICH, Mr. MORAN of Virginia, Mrs. MALONEY, Ms. WASSERMAN SCHULTZ, Ms. LEE, Ms. LINDA T. SANCHEZ of California, Ms. CARSON, Mrs. DAVIS of California, Ms. ZOE LOFGREN of California, Mr. CROWLEY, Mr. SERRANO, Mr. SCOTT of Virginia, Ms. WOOLSEY, Ms. MCCOLLUM of Minnesota, Mr. ROTHMAN, Mr. GRIJALVA, Mr. MEEHAN, Mr. BLUMENAUER, Mr. BERMAN, Mr. DELAHUNT, Ms. SCHAKOWSKY, Mr. EMANUEL, Mr. MCDERMOTT, Mr. SANDERS, Mr. UDALL of New Mexico, Ms. WATSON, and Mrs. CAPPS) introduced the following bill; which was referred to the Committee on the Judiciary

To amend title 11 of the United States Code to provide relief with respect to disaster-related debts incurred by victims of Hurricane Katrina and other natural disasters.

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 `Hurricane Katrina Bankruptcy Relief and Community Protection Act of 2005'.

SEC. 2. DEFINITIONS; WHO MAY BE A DEBTOR.

(a) Current Monthly Income- Section 101(10A)(B) is amended--

(1) by striking `and payments' and inserting `payments', and

(2) by inserting before the period at the end `, and payments to victims of a natural disaster on account of their status as victims of a natural disaster'.

(b) Natural Disaster; Natural Disaster Zone- Section 101 of title 11, United States Code, is amended--

(1) by redesignating paragraphs (40A) and (40B) as paragraphs (40C) and (40D), respectively, and

(2) by inserting after paragraph (40) the following:

`(40A) The term `natural disaster' means--

`(A) a major disaster, as defined in section 102 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act; or

`(B) a situation similar to such a major disaster (as so defined), with respect to which a determination is made in accordance with State law that such situation exists.

`(40B) The term `natural disaster zone' means the geographical area included in the determination of a natural disaster.'.

(c) Victim of Natural Disaster- Section 101 of title 11, United States Code, is amended by adding at the end the following:

`(56) The term `victim of a natural disaster' means a person--

`(A) whose financial condition is materially adversely affected by a natural disaster; and

`(B) whose domicile, residence, or principal place of business in the United States, or whose principal assets in the United States, are located in a natural disaster zone immediately preceding the event that caused the natural disaster exists.'.

(d) Who May Be a Debtor- Section 109(h)(4) of title 11, United States Code, is amended by inserting `natural disaster,' after `disability,'.

SEC. 3. AMENDMENT TO CHAPTER 3.

Section 362(b)(22) of title 11, United States Code, is amended by inserting `(excluding a debtor who is victim of a natural disaster)' after `debtor' the 1st place it appears.

SEC. 4. AMENDMENTS TO CHAPTER 5.

Section 521 of title 11, United States Code, is amended by adding at the end the following:

`(k) The Court may extend any time period specified in this section as may be necessary if--

`(1) the debtor is a victim of a natural disaster; and

`(2) the debtor's status as a victim of a natural disaster necessitates such extension of time.'.

SEC. 5. AMENDMENTS TO CHAPTER 7.

(a) Debtor's Monthly Expenses- Section 707(b)(2)(A)(ii) of title 11, United States Code, is amended by adding at the end the following:

`(IV) In addition, the debtor's monthly expenses may include the actual reasonably necessary expenses incurred as a result of being a victim of a natural disaster.'.

(b) Limitation on Conversion of Case- Section 707(b)(2) of title 11, United States Code, is amended by adding at the end the following:

`(E) Subparagraphs (A), (B), and (C) shall not apply, and the court may not dismiss or convert a case under section 707(b), if the debtor is a victim of a natural disaster.'.

SEC. 6. AMENDMENTS TO CHAPTER 11.

(a) Conversion of Case- Section 1112(b) of title 11, United States Code is amended--

(1) in paragraph (2)(B)(i) by inserting `, including a natural disaster' before the semicolon, and

(2) in paragraph (3) by inserting `(including a natural disaster)' after `circumstances'.

(b) Who May File a Plan- Section 1121(e)(3) of title 11, United States Code, is amended--

(1) in subparagraph (A) by inserting `(i)' after `(A)',

(2) in subparagraph (C) by striking the period at the end and inserting `; or',

(3) by redesignating subparagraphs (B) and (C) as clauses (ii) and (iii), respectively, and

(4) by adding at the end the following:

`(B) the debtor is unable to meet the deadline because of a natural disaster.'.

(c) Extension of Time for Small Businesses- Chapter 11 of title 11, United States Code, is amended--

(1) in the table of sections by adding at the end the following:

`1117. Extension of time for small businesses.', and

(2) in subchapter I by adding at the end the following:

`Sec. 1117. Extension of time for small businesses

`Notwithstanding any other provision of this title, in a small business case the court may extend any deadline specified in this chapter if the court finds that such extension is--

`(1) necessary to protect the best interests of the creditors and the estate; or

`(2) warranted by a natural disaster.'.

SEC. 7. AMENDMENTS TO CHAPTER 13.

(a) Conversion or Dismissal- Section 1307(e) of title 11, United States Code, is amended by adding at the end the following:

`The Court may extend any time period specified in this subsection as may be necessary if--

`(1) the debtor is a victim of a natural disaster; and

`(2) the debtor's status as a victim of a natural disaster necessitates such extension of time.'.

(b) Filing of Prepetition Tax Returns- Section 1308 of title 11, United States Code, is amended by adding at the end the following:

`(d) The Court may extend any time period specified in this subsection as may be necessary if--

`(1) the debtor is a victim of a natural disaster; and

`(2) the debtor's status as a victim of a natural disaster necessitates such extension of time.'.

SEC. 8. AMENDMENT TO TITLE 28 OF THE UNITED STATES CODE.

Section 1408 of title 28, United States Code, is amended--

(1) by inserting `(a)' before `Except', and

(2) by adding at the end the following:

`(b) If a case under title 11 cannot be commenced in a district court described in subsection (a) because a person is the victim of a natural disaster (as defined in section 101 of title 11), then a case under title 11 may be commenced by such person in the district court for the district in which such person resides.'.

SEC. 9. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

(a) Effective Date- This Act and the amendments made by this Act shall take effect on October 18, 2005.

(b) Application of Amendments- The amendments made by this Act shall apply only with respect to cases commenced under title 11 of the United States Code on and after October 17, 2005.

END