See Section 106 for specific changes

    In general 
       "an individual may not be a debtor under this title unless such individual has, 
       during the 180-day [6 months] period preceding the date of filing of the petition
       by such individual, received from an approved nonprofit budget and credit
       counseling agency described in section 111(a) an individual or group briefing
       (including a briefing by telephone or on the Internet) that outlined the 
       opportunities for available credit counseling and assisted such individual in 
       performing a related budget analysis."
 
       and 

       "complete an instructional course concerning personal financial management 
       described in section 111...

   Who can argue that having debtors attend educational classes on financial
   management is a bad idea?  Not debtor attorneys.  But the problem is with whom
   those classes are going to be provided by.  In the last 8 or nine years, the number
   of credit counseling services available has risen considerably.  And many of them
   have run afoul of the law.  These nonprofit agencies derive their necessary income
   FROM THE CREDIT PROVIDING COMPANIES.  That's right.  The non profit 
   credit counseling services get their money from the credit card companies,
   the banks and lenders that debtors deal with.  And now, the law gives them a new
   source of clients.

   A new class of actions has been added, all generally related to domestic support
   obligations(DSO).

    1.  income withholding for DSO will continue;
    2.  withholding or restricting a drivers license;
    3.  interception of a tax refund;

   We are stongly in favor of enforcing DSOs, but if the bankruptcy court is charged
   with managing debts during a bankruptcy, ALL debts should remain under its
   supervision.

  Anyone that considers the career of bankruptcy petition preparer will be asking
  for permanent headache.  This section makes it impossible for a preparer
  to comply with the law in any way that protects them from violation.  

  If you filed a bankruptcy and it was dismissed:
         1.  If you file a second bankruptcy within a year
           i. if the automatic stay was lifted in the previous case, the automatic
              stay expires in 30 days in the new case unless a hearing to extend it
              is held within the 30 days and only if you can demonstrate that the
              second filing is in good faith.
           ii. the second filing is PRESUMED to be in bad faith unless you can show
              otherwise at the hearing.

        2.   If you file a third bankruptcy within a year
          i.  the automatic stay, is not automatic...no stay is granted without a 
              hearing.
          ii. the third filing is PRESUMED to be in bad faith.

   In many instances, a chapter 13 is filed with substantial unsecured debts.  For 
   general reasons, it fails and it is converted to a chapter 7 to eliminate the 
   unsecured debts.  Once completed, a second chapter 13 (a third bankruptcy case) 
   is filed to effectively deal with secured debts.   This is often called a chapter 20, 
   and this would seriously prevent it's use.

   Often, especially in cases of foreclosure, the stay is necessary to accomplish the 
   actions that will allow the debtor to effectively reorganize.  This section prevents
   this form of reorganization.

   The number of cases that this is designed to stop is less than a fraction of 1%
   of the filed petitions.

   "..an order entered under paragraph (4) shall be binding in any other case under 
   this title purporting to affect such real property filed not later than 2 years after
   the date of entry of such order by the court."

   Once an order for relief is granted, in general, it stays in force for 2 years.  In 
   cases where good faith has been shown, but it has been less than 2 years since
   relief was granted in a previous case, this is probably going to be used by 
   secured lien holders to keep the property out of the stay.  Litigation is going to 
   occur clearing this conflict up...

   in a chapter 7
   "the debtor shall...(6)...not retain possession of personal property as to which a 
   creditor has an allowed claim for the purchase price secured in whole or in part by
   an interest in such personal property unless the debtor, not later than 45 days 
   after the first meeting of creditors...

    reaffirms, or redeems the property.

    Examples of purchase money security:  computers, recreation craft, furniture.   
    Most attorneys are going to recommend surrendering the property.  In most cases
    the value of the property is such that it is beneficial to the debtor to give back the
    personal property and getting credit for the fair market value.

  "For purposes of paragraph (5) section 506 shall not apply to a claim....incurred
   within the 910-day [2.5 years] period peceding the date of filing...the collateral
   for that debt consists of a motor vehicle...or if collateral for that debt consists
   of any other thing of value, if the debt was incurred during the 1-year period
   preceding that filing."

  11 USC 506 is used (now) to deal with claims that are secured, but not completely.
  If a car is worth $5,000 (using acceptable means of determining the value) but the
  loan against it is $10,000, 506 allows a debtor to pay the $5,000 as secured and 
  the balance as unsecured.  The result to the creditor is much less (usually) than 
  the $10,000 - and no interest is paid on the unsecured portion.   This section 
  protects the creditor for the first 2.5 years.   If the car is worth $2,000 and the debt
  is $20,000 but the car was purchased only 2 years prior to filing...the entire 
  $20,000 is a secured claim.

   Further, 11 USC 506(d) is used to void a lien when a mortgage holder (usually a 
   second or third) is completely unsecured because the first mortgage is more than 
   the value of the house.  This will protect those lenders that offered home equity
   loans to 125% of the value.

   If you moved to a state with an exemption for an unlimited amount of equity in 
   your home and then filed bankruptcy, you had to wait at least 6 months to do it.

   The change here makes the 'waiting' period 2 years.  This is going to have an 
   impact on people with big incomes or assets (Ken Lay anyone?) AND on people
   that moved to a new state and got into financial trouble because it didn't work out.

    ONE OF THE BIGGEST CHANGES...

   "11 USC 362....does not operate as a stay....

   "of the continuation of any eviction, unlawful detainer action, or similar
   proceeding by a lessor against a debtor involving residential property in which
   the debtor resides as a tenant under a lease or rental agreement and with 
   respect to which the lessor has obtained before the date of the filing of the 
   bankruptcy petition, a judgment for possession of such property against the 
   debtor."

   No longer will the bankruptcy law protect you from getting thrown out on to the 
   street by your landlord.  S/He has a judgment of eviction, pack up, the federal
   court will stand by and watch it happen.  

   There are some limitations.

    THIS IS VERY IMPORTANT!  CHANGES HERE WILL HAVE A DRASTIC EFFECT

   Definitions.

     Some time ago, someone had the wonderful idea of using your credit card to pay 
     your taxes.  Two benefits:  lots of miles in the cards frequent miles programs, 
     and if you filed bankruptcy, the debt would be discharged.

     Well, it wasn't allowed for your federal taxes before, now...

     "...incurred to pay a tax to a governmental unit, other than the United States, 
     that would be nondischareable under paragraph (1);

   You still might get to keep the miles..

    Debtor shall file:
      "(iv) copies of all payment advices or other evidence of payment received within
      60 days before the date of the filing of the petition, by the debtor from any
      employer of the debtor" 

     The last 60 days pay stubs from all employers for debtor and/or spouse.

      Regarding tax returns

      In brief, if you are in a chapter 13, you have a new deadline to file your tax
      return....March 31st.  90 days after the end of the tax year.

    Another means test:

      "If the current monthly income of the debtor and debtor's spouse combined, 
      when multiplied by 12, is not less than --
         (A) in the case of a household of one, the median family income for 1
         (B) in the case of a household of 2, 3 or 4, the highest median family income
              for a family of the same or fewer individuals, or
         (C) in the case of a household of more than 4, plus $525 per month for each
              individual in excess of 4

      the plan may not provide for payments over a period that is longer than 5 years

      3 years (or 5 if approved by the court) if the currently monthly income is less
      than (A), (B) or (C) as applicable...

   Congress wants this rule to be expanded to require that all documents submitted
   to the court by debtor attorneys ...have made reasonable inquiry to verify that the 
   information contained in such documents is -- well grounded in fact.

    What is reasonable inquiry?  We ask, debtors tell?  Probably not.  We ask, debtors
    provide proof?  Probably.   Well grounded in fact.  If the debtor does not believe
    that they will get a raise in the next 12 months, but in fact do, have they not
    provided information that was not well grounded in fact?  If they have always
    received a raise...

   "..to exempt property under State or local law, a debtor may not exempt any 
    amount of interes that was acquired by the debtor during the 1215-day period
   [3 years + 4 months] preceding the date of the filing of the petition that exceeds
   in the aggregate $125,000..."

   There are few states that allow unlimited exemptions on homesteads so this is 
   going to only affect filers in those few states...

   "(2) If the debtor is an individual in a case under chapter 7 or 13, such value with
   respect to personal property securing an allowed claim shall be determined based
   on the replacement value of such property without deduction for costs of sale or
   marketing.  With respect to property acquired for personal, family, or household
   purposes, replacement value shall meand the price a retail merchant would charge
   for property of that kind considering the age and condition of the property at the
   time value is determined."

   Replacement value...not the value of the property on the open market.   This is a
   kettle of worms.  Under what conditions would a retail merchant offer for sale a 
   couch 4 years old?  And at what price compared to new?  If a pawn shop and a 
   refinishing shop both offered a 4 year old couch, which one do you think creditors
   will want to use for their valuation?  The Debtor?  Judge decides...and decides, and
   decides....

   (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..., may order the attorney
   for the debtor to reimburse the trustee for all reasonable costs in prosecuting a 
   motion filed under section 707(b)...

    ...(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 is well grounded in fact....
 
   ...(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.

   Frankly, any attorney that signs such a petition or pleading should have his/her
   head examined.  Clients lie.   What will constitute a reasonable investigation is 
   going to be litigated, as is "well grounded in fact".