Bankruptcy Amendments of 1997

Bankruptcy Amendments of 1997 - Makes technical corrections to Federal bankruptcy, criminal, and judiciary law. Redefines single asset real estate to exclude family farms, and to increase from $4 million to $15 million the ceiling on the amount of noncontingent, liquidated secured debts on such property. Defines the term "transfer" to include: (1) creation of a lien; (2) retention of title as a security interest; (3) foreclosure of the debtor's equity of redemption; and (4) every mode of disposing of property or parting with an interest in property.

(Sec. 3) Requires triennial adjustment of the $5,000 value of certain implements, professional books, tools of the trade, farm animals, and crops which a debtor may exempt from the property of the estate (protecting it from creditors' liens).

(Sec. 6) Provides that a trustee or a creditors' and equity security holders' committee may pay a professional person they employ on a fixed or percentage fee basis, as well as on other bases already permitted.

(Sec. 7) Allows a bankruptcy court to award reasonable compensation out of the debtor's estate to the debtor's attorney in chapter 7 (Liquidation) cases.

(Sec. 10) Precludes an automatic stay of any transfer that is not avoidable in: (1) cases where the trustee serves as lien creditor and successor to certain creditors and purchasers; and (2) postpetition transactions.

(Sec. 11) Modifies guidelines governing assumption by the bankruptcy trustee of certain executory contracts and unexpired leases with specified defaults. Permits a trustee to assume an unexpired lease of real property without first curing a default arising from any failure to perform nonmonetary obligations under the lease if it is impossible to cure the default by performing nonmonetary acts at and after the time of assumption. Permits a trustee to assume an executory contract without first curing a default arising from such a failure: (1) if it is impossible to cure the default by performing nonmonetary acts at and after the time of assumption; and (2) if the court determines, based on the equities of the case, that the default should not be cured at and after such time.

Repeals: (1) the prohibition against trustee assumption or assignment of unexpired leases of aircraft facilities unless all such leases are assumed or assigned; and (2) the deemed rejection of such a lease if the trustee does not assume or reject it.

Revises guidelines governing impairment of claims and interests in a Chapter 11 (Reorganization) case to: (1) reflect the modifications made to executory contracts that are not required to be cured by the bankruptcy trustee; and (2) state that a claim or interest arising from any failure to perform a nonmonetary obligation is not impaired under a Reorganization plan if the plan compensates the claim or interest holder for actual pecuniary loss resulting from such failure.

(Sec. 13) Excludes from compensable professional services any expenses incurred by an individual member of a creditors' and equity security holders' committee.

(Sec. 15) Revises the prohibition against debtor avoidance of certain judicial liens in connection with a liability designated as, and actually in the nature of, alimony, maintenance, or support.

(Sec. 16) Declares nondischargeable in bankruptcy a debt for death or personal injury caused by the debtor's operation of a watercraft or aircraft while intoxicated from alcohol, a drug, or other substance. Limits the nondischargeability of fees imposed by a court to fees so imposed on a prisoner.

(Sec. 21) Revises guidelines governing preferences to provide that, if the trustee avoids a security interest given between 90 days and one year before the date of the filing of the petition, by the debtor to a non-insider for the benefit of a creditor that is an insider, then such security interest shall be considered to be avoided only with respect to the insider creditor.

(Sec. 23) Revises setoff recovery rules to exclude from recovery by a trustee setoffs by swap participants.

(Sec. 26) Requires the U.S. trustee in a chapter 11 (Reorganization) case to file a report certifying the election of an eligible, disinterested trustee at a meeting of creditors. Declares that upon such filing: (1) the trustee elected shall be considered to have been selected and appointed; and (2) the service of any trustee previously appointed to fill the term of specified ineligible or incapacitated trustees shall terminate.