Page:United States Statutes at Large Volume 108 Part 5.djvu/643

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PUBLIC LAW 103-394—OCT. 22, 1994 108 STAT. 4133 or territorial law by a governmental unit, or property settlement agreement, but not to the extent that such debt— "(A) is assigned to anothei^ entity, voluntarily, by operation of law, or otherwise; or " (B) includes a Uability designated as alimony, maintenance, or support, unless such liability is actuEuly in the nature of alimony, maintenance or support". (d) PROTECTION OF LIENS.—Section 522(f)(1)(A) of title 11, United States Code, as amended by section 303, is amended by inserting after "hen" the following: ", other than a judicial lien that secures a debt— "(i) to a spouse, former spouse, or child of the debtor, for alimony to, maintenance for, or support of such spouse or child, in connection with a separation agreement, divorce decree or other order of a court of record, determination made in accordance with State or territorial law by a governmental unit, or property settlement agreement; and

  • (ii) to the extent that such debt—

"(I) is not assigned to another entity, voluntarily, by operation of law, or otherwise; and " (II) includes a liability designated as alimony, maintenance, or support, unless such liability is actually in the nature of alimony, maintenance or support". (e) EXCEPTION TO DISCHARGE. —Section 523 of title 11, United States Code, as amended by section 221, is amended by adding at the end the following: "(15) not of the kind described in paragraph (5) that is incurred by the debtor in the course of a divorce or separation or in connection with a separation agreement, divorce decree or other order of a court of record, a determination made in accordance with State or territorial law by a governmental imit unless— "(A) the debtor does not have the ability to pay such debt from income or property of the debtor not reasonably necessary to be expended for the maintenance or support of the debtor or a dependent of the debtor and, if the debtor is engaged in a business, for the payment of expenditures necessary for the continuation, preservation, and operation of such business; or "(B) discharging such debt would result in a benefit to the debtor that outweighs the detrimental consequences to a spouse, former spouse, or child of the debtor;", and (2) in subsection (c)(l) by striking "or (6)" each place it appears and inserting "(6), or (15)". (t) PROTECTION AGAINST TRUSTEE AVOIDANCE. —Section 547(c) of title 11, United States Code, is amended— (1) in paragraph (6) by striking "or" at the end, (2) by redesignating paragraph (7) as para^ph (8), and (3) by inserting after paragraph (6) the following: "(7) to the extent such transfer was a bona fide payment of a debt to a spouse, former spouse, or child of the debtor, for alimony to, maintenance for, or support of such spouse or child, in connection with a SCT)aration agreement, divorce decree or other order of a court of record, determination made in accordance with State or territorial law by a governmental imit, or property settlement agreement, but not to the extent that such debt—