This section of the bill states that the official name for this legislation is the "Consumer Bankruptcy Reform Act of 2024."

The document provides a detailed table of contents for a legislative act, dividing it into five main titles focusing on individual bankruptcy procedures, consumer financial protection amendments, bankruptcy rules, funding the bankruptcy system, and miscellaneous provisions. Each title contains specific sections addressing issues like amending existing laws, enhancing judicial education, and setting bankruptcy fees.

Congress finds that many individuals and families in the United States struggle with financial distress due to factors like job loss and medical bills, and the current bankruptcy system is outdated and complex, making it difficult for people to access relief. The purpose of this Act is to create a fairer, simpler bankruptcy system that helps people manage debt, prevents abuse by creditors, and closes loopholes that benefit the wealthy.

The document outlines the creation of Chapter 10 in Title 11 of the United States Code, focusing on individual bankruptcy. It details the roles and responsibilities of trustees and debtors, rules and procedures for filing, confirming, and modifying bankruptcy plans, and conditions under which a debtor can discharge their debts, emphasizing protections for debtors and guidelines for treating secured claims, leases, and obtaining credit.

The section outlines the role and duties of a trustee in bankruptcy cases, including appointing an independent trustee or the United States trustee to serve, assisting debtors with payment plans, and providing notices regarding domestic support obligations. It also sets forth prohibitions for the trustee, such as not acting as an advocate for debtors or creditors, and describes the process for notifying child support agencies when a debtor has a claim for domestic support.

The section outlines the rights and powers of a debtor, emphasizing that they have similar rights to a trustee concerning certain legal provisions, such as sections 363 and 364. It also explains that a debtor can cancel certain property transfers if they meet specific legal criteria, especially if a trustee cannot or chooses not to act.

A debtor is considered to be engaged in business if they are self-employed and required to withhold taxes. Such a debtor can operate their business with similar rights to a trustee, unless directed otherwise by the court, but must perform certain trustee duties and is exempt from specific provisions of section 308.

The debtor can keep possession of all the property that belongs to the estate unless a confirmed plan or a court order states otherwise.

The section outlines the rules for converting or dismissing a bankruptcy case. It details how a debtor can request conversion to a different type of bankruptcy and how other parties can request dismissal or conversion for specific reasons, such as unreasonable delays or failure to file necessary documents. It also explains situations where a case might be dismissed for misuse of the bankruptcy system and stipulates that a debtor can request dismissal, though they won't receive a discharge of debts if the case is dismissed.

The section specifies that a debtor's contract or lease can't be canceled or changed, and the debtor can't be declared in default, just because of their insolvency, the beginning of a bankruptcy case, appointment of a trustee, or filing of a bankruptcy plan.

In this section, a "rental-purchase agreement" is defined as a deal where a person can use personal property while having the option, but not the obligation, to buy it. It explains that the lessor (the one leasing out the property) has no interest in the property under bankruptcy law, outlines the rights of a debtor to retain the property, how liabilities are treated if they choose to keep the property, and prohibits lessor actions after a discharge.

In this section, it explains that a debtor in bankruptcy needs court permission to borrow money outside of normal practices, and any unauthorized borrowing is invalid. The court can only approve borrowing if it's beneficial for the debtor, ensures interest rates are within limits, and complies with nonbankruptcy laws, with these rules applying until the bankruptcy case is officially closed.

This section explains that after a bankruptcy relief order is entered, creditors can't collect debts from individuals co-liable with the debtor, except in certain business cases or if the case is closed, dismissed, or changed to a different chapter. Creditors can still handle negotiable instruments, and the court can lift these restrictions if the co-liable individual got something for the claim, the debtor's plan doesn't cover the claim, or the creditor's interests might be seriously harmed. Also, the restrictions end 20 days after a request for relief unless objected to in writing.

The section explains that when interpreting the rules in this chapter, the laws should be understood in a way that favors giving help to consumers who owe money.

The section outlines different types of repayment plans that a debtor can file, such as plans for unsecured claims, claims secured by a principal residence, or other properties. It also states that a debtor with no minimum payment obligation can be discharged without filing a plan but may still choose to file one. If a court confirms a repayment plan, no additional plans can be submitted, and there are special rules for involuntary cases and deadlines for filing plans.

The section outlines the contents required for different types of financial plans in bankruptcy cases. Repayment plans must specify payment terms, may include tax plans, allow for modifications in debt payment methods, and provide trustees a role in debt management. Residence plans address claims and rights involving the debtor’s principal residence, allow for property sale conditions, and manage defaults on residential claims. Property plans handle property other than the principal residence, addressing secured claims, defaults, and necessary financial arrangements. Finally, the cure of default provides guidelines for resolving payment defaults without additional penalties or late fees.

The court must hold a hearing to confirm a plan if there is an objection from the trustee, United States trustee, or a creditor, unless the court extends the timeline for a valid reason. If there are no objections, the court can confirm the plan without a hearing. If a debtor files multiple plans, a single confirmation hearing will be held for all, unless the court decides otherwise or no hearing is necessary.

The section outlines the requirements for a court to approve different types of financial plans proposed by a debtor during bankruptcy proceedings. It explains the conditions under which objections can be made by creditors or trustees and how such objections can be resolved, including specific rules for repayment plans, residence plans related to a debtor's home, and property plans for other secured properties.

The section lays out the duties and responsibilities of a trustee in a repayment plan, including collecting debtor income, making payments to creditors, and handling property of the estate. It also addresses the enforcement of debtor obligations, priority of payments, and restrictions on enforcement actions, such as not pursuing delinquent payments until they are overdue for 90 days, and rules about legal fees and costs related to enforcement.

Payments under a residence or property plan must align with the plan's terms. If the plan seeks to fix a missed payment on a secured debt, the debtor can certify the full cure to the claim holder after completing the plan's payments. The court will confirm if the debtor has correctly remedied the default and all other related payments.

In this section, it is explained that a debtor must make payments directly to the lessor for any lease on personal property, unless the court decides otherwise, or if the lease is rejected or assumed under specific conditions. Additionally, within 60 days of a relief order, the debtor must show proof of insurance for any personal property retained under a lease or purchase money security interest and continue doing so until a plan related to the property is confirmed.

The section describes the effects of confirming a bankruptcy repayment plan, including how it binds the debtor and creditors, creates injunctions that protect the debtor from lawsuits while payments are ongoing, and outlines the conditions under which the debtor's or trustee's property interest is altered. It also explains how legal disputes related to the plan can be resolved, how certain contract clauses are voided upon confirmation, and the trustee's rights regarding security interests on the debtor's property.

The court can change a debtor's repayment plan if the debtor's financial situation worsens significantly after the plan is confirmed, causing a major difficulty. Additionally, if unexpected attorney's fees arise after the plan is confirmed, the court can allow changes to the plan to cover these fees and extend the payment period by up to six months.

The section outlines conditions under which a court can discharge a debtor's debts, specifying that discharge happens after a repayment plan is confirmed or deadlines expire, but cannot occur if the debtor has done things like falsifying records or committing fraud. It also explains that certain debts, like those with tax priority, might be discharged if paid, except if incurred through fraud, and highlights the debtor's rights, including actions against wrongful claims.

In this section, the court is given the power to revoke an order of confirmation or discharge within one year if it was obtained through the debtor's fraud or if the debtor fails to comply with lawful orders, despite having immunity. If such a revocation occurs, the court must either convert or dismiss the case.

The trustee has the authority to cancel a lien if it is associated with a certain type of claim outlined in another specific section of the law (section 726(a)(4)).

The trustee is not allowed to take legal action to undo a transfer or obligation under several specified sections unless the debtor's repayment plan does not fully cover certain unsecured claims against the estate.

Debtors who qualify for a specific chapter can choose to conduct a limited proceeding impacting only their secured property claims when they file for relief. If they don't choose this option, the case automatically becomes a general proceeding, and the limited proceeding rules won't apply. Once the relief order is entered, they can't choose a limited proceeding unless the case is dismissed, then restarted.

If a debtor chooses a limited proceeding, they must list all involved properties and creditors. Their estate will only include the listed properties, and several sections of the law won't apply. The debtor gains certain trustee powers and must submit relevant plans for the properties within specified timeframes. The automatic stay applies only to entities with an interest in the listed properties, and certain filing and notice requirements are relaxed.

The section describes the conditions under which a debtor can choose to either dismiss or convert a limited proceeding into a general proceeding. It outlines specific steps and criteria for conversion, the effects on property and creditors, and allows the court to dismiss a limited proceeding if it is deemed an improper use of the bankruptcy system.

The section repeals Chapter 13 of Title 11 of the United States Code and updates the list of chapters for Title 11 by removing the reference to Chapter 13.

This section proposes changes to the Bankruptcy Code, primarily focusing on the redefinition and reordering of various terms and provisions related to bankruptcy. It includes amendments like introducing new definitions for terms like "store gift card" and "repayment plan," restructuring numerous existing paragraphs, altering the applicability of chapters, and adjusting rules around trustee duties, debtor eligibility, and discharge procedures.

The Bureau of Consumer Financial Protection is allowed to represent itself in bankruptcy cases and can participate in court discussions without needing another party to represent it.

The section outlines amendments to U.S. legal procedures for collecting data when a bankruptcy case is filed, specifying the type of personal information collected from debtors, ensuring privacy through anonymization, and detailing how information is to be compiled, reported, and made available to researchers and the public. It mandates the creation of statistical tables, reports to Congress, and an electronic database, all aimed at understanding disparities in the bankruptcy system while protecting individuals' personal data.

In this section, electronic signatures are defined and acknowledged as legally valid for cases under title 11 of the United States Code, meaning they cannot be dismissed just because they are electronic. Additionally, original signatures can be electronic signatures in these cases.

The Federal Judicial Center's Director, working with the Executive Office for United States Trustees' Director, is required to create materials and offer training to help courts understand and apply the provisions of this Act and its amendments.

The section makes various changes to existing laws to reflect updates in bankruptcy-related chapters, ensuring consistency across different federal statutes. It involves amendments to multiple acts, including the Bankruptcy Abuse Prevention and Consumer Protection Act, the Internal Revenue Code, and Title 28 and Title 38 of the United States Code, by adjusting references to bankruptcy chapters.

The amendments to the Consumer Financial Protection Act of 2010 introduce a Consumer Bankruptcy Ombuds within the Bureau to assist debtors in bankruptcy, regulate higher cost lenders by adjusting the definition of loans with high annual percentage rates, and provide guidance on violations of bankruptcy discharge injunctions. Additionally, the amendments give the Bureau enforcement authority over individual debtor bankruptcies and set requirements for publishing motor vehicle financing rates.

The Consumer Bankruptcy Ombuds is a role established to help people going through bankruptcy by resolving complaints and gathering data on bankruptcy filings and issues. The Ombuds also provides recommendations to government officials and prepares annual reports on their activities and effectiveness.

The section amends the Truth in Lending Act by increasing certain monetary thresholds, such as changing amounts from "$200" to "$1,600," and sets these new thresholds to adjust each year based on the Consumer Price Index. Additionally, the threshold for penalties was altered from the "lesser of $1,000,000 or 1" to the "greater of $8,000,000 or 5," ensuring that these amounts reflect economic changes over time.

The amendments to the Fair Credit Reporting Act include changes to the time period for reporting certain bankruptcy cases and an increase in statutory damages for willful violations from a range of $100-$1,000 to $700-$7,000. Additionally, starting April 1, 2026, and every year after, these dollar amounts will be adjusted based on changes in the Consumer Price Index, rounded to the nearest $25.

The Equal Credit Opportunity Act is being updated to include protections based on sexual orientation, gender identity, and familial status. Additionally, it increases certain penalty amounts from $10,000 to $60,000 and from $500,000 to $5,000,000, with these amounts adjusted for inflation every year starting in 2026.

The proposed amendments to the Fair Debt Collection Practices Act include clarifying that certain actions must involve personal property, increasing penalties for violations, adding rules against filing lawsuits with expired time limits, prohibiting debt collection on debts discharged in bankruptcy unless voluntary, and ensuring financial figures are updated annually based on changes in the cost of living.

The amendments to the Electronic Fund Transfers Act increase the penalty limits for certain violations from $100 to $500 and from $1,000 to $5,000. They also change the maximum liability from the lesser of $500,000 or 1% to the greater of $5,000,000 or 5%. Starting April 1, 2026, these amounts will be adjusted annually based on changes in the Consumer Price Index.

The section allows the Supreme Court to create rules for legal procedures in bankruptcy cases before a new law takes effect. It also makes a minor change to the law and requires that a specific form be written clearly, following the Plain Writing Act.

In Section 302, the rules for bankruptcy procedures are updated by removing a specific part, known as subdivision (h), from Rule 7004 of the Federal Rules of Bankruptcy Procedure.

The section expresses Congress's opinion that the Judicial Conference of the United States should create a simpler form for reporting income and spending for certain debtors who are not required to provide detailed documentation. It also suggests that there should be rules allowing individuals to enforce certain rights in bankruptcy cases through a motion.

The section amends bankruptcy fees in section 1930 of title 28 of the United States Code by updating fee amounts for specific chapters, specifying no additional fees for filing a petition under chapter 10, and allowing courts to waive fees for individuals with low income under chapter 10.

The section amends existing laws to update the rules about how trustees are appointed, compensated, and regulated when overseeing certain bankruptcy cases in the United States. It includes details about the compensation limits for standing trustees and specifies that regulations must be created to guide the process of replacing a trustee when needed.

The changes introduced by this Act, along with any modifications it makes, will become active one year after the Act is officially passed into law.

In Section 502, it states that for bankruptcy cases started under title 11 of the United States Code before one year after this Act becomes law, everything related to these cases will be handled as if this Act never existed. This means that all rights and laws that applied before will continue to govern these cases.

If any part of this law or its changes are found to be invalid or unconstitutional, the rest of the law and its changes will still remain in effect and can be applied to others.