Bankruptcy Improvements Act of 1982

(Reported to Senate from the Committee on the Judiciary with amendments, S. Rept. 97-446)

Bankruptcy Improvements Act of 1982 - Amends title 11 (Bankruptcy) of the United States Code to permit any order, process, or judgment issued by a bankruptcy court to allow for the imposition of civil penalties to redress violations of the bankruptcy laws.

Establishes an eligibility test for liquidation bankruptcy relief based on the individual petitioner's inability to pay a reasonable portion of his debts out of future income.

Permits the court to dismiss a bankruptcy case upon the motion of any party in interest filed prior to the conclusion of the first meeting of creditors, and after notice and a hearing, if the debtor is ineligible for relief because he is able to pay a reasonable portion of his debts out of future income.

Requires the bankruptcy judge to convene, and permits such judge to preside at, any meeting of creditors and to perform such additional judicial duties as may be required.

Declares that the value of the creditor's interest in the estate's interest in consumer goods property shall be determined in light of the purpose of the valuation and of the proposed disposition or use of such property, and in conjunction with any hearing on such disposition or use or on a plan affecting such creditor's interest. Declares that the value of consumer goods which the debtor seeks to redeem in liquidation shall be presumed to be the established resale market price, if such market exists. Permits the court to utilize other methods of valuation if no such market exists or if the court determines that resale value is inappropriate in light of the property's proposed use or disposition.

Requires the debtor in bankruptcy cases to file a statement of estimated income and expenses for the year following filing of his petition. Requires the debtor, if the debtor's schedule of assets and liabilities include consumer debts secured by property of the estate, to file and serve upon each creditor holding such security and the trustee, a statement expressing the debtor's intention with respect to retention or surrender of the collateral.

Requires the debtor, at or before the meeting of creditors provided for by such title, to perform his intention with regard to such secured creditors.

Requires that the notice of meeting of the creditors be accompanied by a copy of the statement of estimated income and expenses and that the debtor supply the clerk of the court, upon the filing of the petition, with enough copies of such statement to accommodate the listed creditors.

Requires individuals filing for bankruptcy in joint or consolidated cases to elect either the Federal or State exemptions. Places an aggregate limit of $3,000 on the value of the exemption with regard to household goods and personal effects.

Prohibits the debtor from utilizing the unused dollar value of the homestead exemption to exempt additional property not explicitly provided for by such Act.

Repeals the provisions of such Act which currently authorize the debtor to avoid nonpurchase money security interests in property.

Presumes nondischargeable any debt incurred on or within 45 days before the date of the filing of a petition under such title. Allows for rebuttal of such presumption.

Allows creditors to enforce liens which have not been voided in bankruptcy.

Permits reaffirmation of consumer debts subject to the debtor's right to rescind any such agreement within 60 days or until a discharge is received, whichever occurs later, by giving a written notice of rescission to the creditor.

Declares that at the meeting of creditors the court shall inform the debtor of the nature and effect of a discharge and of any reaffirmation of debt.

Limits the trustee's power to avoid liens or recover payments made within 90 days of the filing of the petition in bankruptcy (within one year in the case of an insider) unless the creditor had reasonable cause to believe the debtor was insolvent.

Permits the court, upon notice and hearing, to require a creditor to accept payments in redemption of the value of a claim secured by a nonpossessory, nonpurchase money security interest in tangible personal property, over a reasonable period not to exceed five years, if such tangible personal property consists of specified household goods and tools of the debtor's trade.

Permits the court, upon notice and hearing, to avoid any lien, in whole or in part, if the court finds: (1) that the debtor has no reasonable ability to pay the redemption value of such property out of anticipated future income; and (2) the enforcement of such lien would impose undue hardship on the debtor.

Allows a creditor, upon 10 days notice to the debtor and codebtor, to collect any portion of a debt from the codebtor which is not being paid by the debtor through the adjustment of debts of such debtor with a regular income.

Requires payments under an adjustment of debts payment plan to commence within thirty days after the filing of the plan. Provides for the return of such funds after deducting the costs of administration if no plan is confirmed.

Provides for the separate classification of co-debtor claims and non-dischargeable claims and authorizes payment of them under an adjustment of debts payment plan.

Allows a debtor to choose such a repayment plan of up to five years.

Bases such repayment upon the debtor's ability to repay out of future income after taking into account the basic living necessities for the debtor and dependents.

Provides for an early discharge of debts where a reasonable portion of unsecured claims are paid.

Permits a hardship discharge of otherwise non-dischargeable debts to the extent the debtor attempted to pay such debts under an adjustment of debts payment plan, but was prevented from so doing by unforeseen circumstances.