Consumer Bankruptcy Reform Act of 2024

# Summary of the Consumer Bankruptcy Reform Act of 2024 This comprehensive legislation proposes major reforms to the U.S. bankruptcy system, with the most significant change being the introduction of **Chapter 10** for individual debtors (replacing Chapter 13 for individuals). ## Key Provisions: ### 1. Introduction of Chapter 10 - Creates a new Chapter 10 for individual debtors to replace Chapter 13 - Requires debtors to meet a "minimum payment obligation" under section 1021(a)(1) - Introduces new plan types: repayment plans, residence plans, and property plans - Changes discharge procedures (replacing Chapter 7 and Chapter 13 discharge provisions) ### 2. Major Bankruptcy Code Changes - Amends Chapter 7, 11, 12, and 13 provisions to reflect the new Chapter 10 structure - Modifies discharge exceptions (Section 523) to include new provisions for attorney compensation - Changes confirmation requirements (Section 1129) to reference "minimum payment obligation" - Repeals outdated sections (e.g., Sections 722, 727, 1228(f)) ### 3. Consumer Financial Protections - Strengthens enforcement of discharge injunctions (Section 524) - Requires collection of demographic data on bankruptcy filers (Section 159) - Increases penalties for violations of the Fair Debt Collection Practices Act - Amends Truth in Lending Act to increase statutory damages ### 4. Systemic Changes - Creates a "Consumer Bankruptcy Ombuds" within the Consumer Financial Protection Bureau - Amends fee structure for bankruptcy filings (Chapter 10 filing fee increased to $250) - Changes trustee compensation structure with new maximums - Adds requirements for data collection on bankruptcy filings ### 5. Other Key Elements - Requires "plain writing" for bankruptcy forms - Establishes a new process for waiver of bankruptcy fees - Introduces data collection requirements for identifying disparities in the bankruptcy system - Creates new penalties for violating discharge injunctions This legislation represents a significant overhaul of the bankruptcy system, with a focus on creating a more streamlined process for individual debtors, strengthening consumer protections, and improving data collection to address disparities in the bankruptcy system. The effective date is set for one year after enactment, with transition provisions for cases filed before that date.