Changes in § 704. Duties of trustee
Chapter 7 Trustee to File a Statement as to
Whether the Case is an Abuse Under §707(b)
§704(b)(1) requires the Chapter 7 trustee
to file a statement with the court as to whether the debtor's case
would be presumed to be an abuse under §707(b) within 10 days after
the §341meeting. Five days after receiving the
statement, the court is to provide a copy to all creditors.
US Trustee to Move to Dismiss or Convert Case
§704(b)(2) requires the US Trustee or
bankruptcy administrator to move to convert or dismiss the case
within 30 days after the Chapter 7 trustee has filed his statement,
or to file a statement indicating why conversion or dismissal is not
appropriate. The US Trustee may decline to file the motion if
the debtor's current monthly income is less than 150% of the state's
median income, and the debtor's current monthly income less expenses
times 60 is less than $6,000, or, if more than $6,000 but less than
$10,000, less than 25% of unsecured claims.
Trustee to Give Notice regarding Domestic Support
§704(c) requires the Chapter 7 trustee to
notify holders of domestic support claims of the services of the the
State child support enforcement agency, and upon discharge, notify
the State agency of the Debtors address and creditors not discharged
or reaffirmed. Creditors are required to disclose the debtor's
address on request by the holder of a support claim.
Other Duties
§704(a)(11) makes requirements
regarding the transfer of patients of health care debtors.
§704(a)(12) of S.420 only requires
trustee to continue to perform the duties of an employee benefit
administrator debtor.
Text appearing below in blue is the same in
H.R.333 and S.420. Text
in maroon is only in H.R.333. Text in
green is only in S.420.
§ 704. Duties of trustee
(a) The trustee shall--
(1) collect and reduce to money the property of the estate for which
such trustee serves, and close such estate as expeditiously as is
compatible with the best interests of parties in interest;
(2) be accountable for all property received;
(3) ensure that the debtor shall perform his intention as specified
in section 521(2)(B)
of this title;
(4) investigate the financial affairs of the debtor;(
5) if a purpose would be served, examine proofs of claims and object
to the allowance of any claim that is improper;
(6) if advisable, oppose the discharge of the debtor;
(7) unless the court orders otherwise, furnish such information
concerning the estate and the estate's administration as is requested by
a party in interest;
(8) if the business of the debtor is authorized to be operated, file
with the court, with the United States trustee, and with any
governmental unit charged with responsibility for collection or
determination of any tax arising out of such operation, periodic reports
and summaries of the operation of such business, including a statement
of receipts and disbursements, and such other information as the United
States trustee or the court requires;
(9) make a final report and file a final account of the
administration of the estate with the court and with the United States
trustee; and
(10) if, with respect to an individual debtor,
there is a claim for a domestic support obligation, provide the
applicable notification specified in subsection (c);
and
(11) use all reasonable and best efforts to transfer patients from a
health care business that is in the process of being closed to an
appropriate health care business that--
(A) is in the vicinity of the health care business that is closing;
(B) provides the patient with services that are substantially
similar to those provided by the health care business that is in the
process of being closed; and
(C) maintains a reasonable quality of care .;
and
(12) where, at the time of the time of the
commencement of the case, the debtor served as the administrator (as
defined in section 3 of the Employee Retirement Income Security Act of
1974 (29 U.S.C. 1002)) of an employee benefit plan, continue to perform
the obligations required of the administrator;
(b)
(1) With respect to an individual debtor under
this chapter--
(A) the United States trustee or bankruptcy
administrator shall review all materials filed by the debtor and, not
later than 10 days after the date of the first meeting of creditors,
file with the court a statement as to whether the debtor's case would
be presumed to be an abuse under section 707(b); and
(B) not later than 5 days after receiving a
statement under subparagraph (A), the court shall provide a copy of
the statement to all creditors.
(2) The United States trustee or bankruptcy
administrator shall, not later than 30 days after the date of filing a
statement under paragraph (1), either file a motion to dismiss or
convert under section 707(b) or file a statement setting forth the
reasons the United States trustee or bankruptcy administrator does not
believe that such a motion would be appropriate, if the United States
trustee or bankruptcy administrator determines that the debtor's case
should be presumed to be an abuse under section 707(b) and the product
of the debtor's current monthly income, multiplied by 12 is not less
than--
(A) in the case of a debtor in a household of
1 person, the median family income of the applicable State for 1
earner last reported by the Bureau of the Census; or
(B) in the case of a debtor in a household of
2 or more individuals, the highest median family income of the
applicable State for a family of the same number or fewer individuals
last reported by the Bureau of the Census.
(3) In any case in which a motion to dismiss or
convert, or a statement is required to be filed by this subsection, the
United States trustee or bankruptcy administrator may decline to file a
motion to dismiss or convert pursuant to section 704(b)(2) if the
product of the debtor's current monthly income multiplied by 12 exceeds
100 percent, but does not exceed 150 percent of--
(A)
(i) in the case of a debtor in a household
of 1 person, the median family income of the applicable State for 1
earner last reported by the Bureau of the Census; or
(ii) in the case of a debtor in a household
of 2 or more individuals, the highest median family income of the
applicable State for a family of the same number or fewer
individuals last reported by the Bureau of the Census; and
(B) the product of the debtor's current
monthly income, reduced by the amounts determined under section
707(b)(2)(A)(ii) (except for the amount calculated under the other
necessary expenses standard issued by the Internal Revenue Service)
and clauses (iii) and (iv) of section 707(b)(2)(A), multiplied by 60
is 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.
(c)
(1) In any case described in subsection
(a)(10), the trustee shall--
(A)
(i) notify in writing the holder of the claim
of the right of that holder to use the services of a State child
support enforcement agency established under sections 464 and 466 of
the Social Security Act (42 U.S.C. 664,
666) for the State in which the holder
resides for assistance in collecting child support during and after
the bankruptcy procedures;
(ii) include in the notice under this
paragraph the address and telephone number of the child support
enforcement agency; and
(iii) include in the notice an explanation of
the rights of the holder of the claim to payment of the claim under
this chapter; and
(B)
(i) notify in writing the State child support
agency of the State in which the holder of the claim resides of the
claim;
(ii) include in the notice under this
paragraph the name, address, and telephone number of the holder of the
claim; and
(iii) at such time as the debtor is granted a
discharge under section 727, notify the holder of that claim and the
State child support agency of the State in which that holder resides
of--
(I) the granting of the discharge;
(II) the last recent known address of the
debtor;
(III) the last recent known name and
address of the debtor's employer; and
(IV) with respect to the debtor's case, the
name of each creditor that holds a claim that--
(aa) is not discharged under paragraph
(2), (4), or (14A) of section 523(a); or
(bb) was reaffirmed by the debtor under
section 524(c).
(2)
(A) A holder of a claim or a State child
support agency may request from a creditor described in paragraph (1)(B)(iii)(IV)
the last known address of the debtor.
(B) Notwithstanding any other provision of
law, a creditor that makes a disclosure of a last known address of a
debtor in connection with a request made under subparagraph (A) shall
not be liable to the debtor or any other person by reason of making
that disclosure.
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