PUBLIC LAW 109–8—APR. 20, 2005
119 STAT. 43
SEC. 202. EFFECT OF DISCHARGE.
Section 524 of title 11, United States Code, is amended by adding at the end the following: ‘‘(i) The willful failure of a creditor to credit payments received under a plan confirmed under this title, unless the order confirming the plan is revoked, the plan is in default, or the creditor has not received payments required to be made under the plan in the manner required by the plan (including crediting the amounts required under the plan), shall constitute a violation of an injunction under subsection (a)(2) if the act of the creditor to collect and failure to credit payments in the manner required by the plan caused material injury to the debtor. ‘‘(j) Subsection (a)(2) does not operate as an injunction against an act by a creditor that is the holder of a secured claim, if— ‘‘(1) such creditor retains a security interest in real property that is the principal residence of the debtor; ‘‘(2) such act is in the ordinary course of business between the creditor and the debtor; and ‘‘(3) such act is limited to seeking or obtaining periodic payments associated with a valid security interest in lieu of pursuit of in rem relief to enforce the lien.’’. SEC. 203. DISCOURAGING ABUSE OF REAFFIRMATION AGREEMENT PRACTICES.
(a) IN GENERAL.—Section 524 of title 11, United States Code, as amended section 202, is amended— (1) in subsection (c), by striking paragraph (2) and inserting the following: ‘‘(2) the debtor received the disclosures described in subsection (k) at or before the time at which the debtor signed the agreement;’’; and (2) by adding at the end the following: ‘‘(k)(1) The disclosures required under subsection (c)(2) shall consist of the disclosure statement described in paragraph (3), completed as required in that paragraph, together with the agreement specified in subsection (c), statement, declaration, motion and order described, respectively, in paragraphs (4) through (8), and shall be the only disclosures required in connection with entering into such agreement. ‘‘(2) Disclosures made under paragraph (1) shall be made clearly and conspicuously and in writing. The terms ‘Amount Reaffirmed’ and ‘Annual Percentage Rate’ shall be disclosed more conspicuously than other terms, data or information provided in connection with this disclosure, except that the phrases ‘Before agreeing to reaffirm a debt, review these important disclosures’ and ‘Summary of Reaffirmation Agreement’ may be equally conspicuous. Disclosures may be made in a different order and may use terminology different from that set forth in paragraphs (2) through (8), except that the terms ‘Amount Reaffirmed’ and ‘Annual Percentage Rate’ must be used where indicated. ‘‘(3) The disclosure statement required under this paragraph shall consist of the following: ‘‘(A) The statement: ‘Part A: Before agreeing to reaffirm a debt, review these important disclosures:’; ‘‘(B) Under the heading ‘Summary of Reaffirmation Agreement’, the statement: ‘This Summary is made pursuant to the requirements of the Bankruptcy Code’;
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