PUBLIC LAW 109–8—APR. 20, 2005
119 STAT. 103
than an amount equal to 25 percent of the amount of any similar transfer or obligation made to or incurred for the benefit of such insider for any purpose during the calendar year before the year in which such transfer is made or obligation is incurred; ‘‘(2) a severance payment to an insider of the debtor, unless— ‘‘(A) the payment is part of a program that is generally applicable to all full-time employees; and ‘‘(B) the amount of the payment is not greater than 10 times the amount of the mean severance pay given to nonmanagement employees during the calendar year in which the payment is made; or ‘‘(3) other transfers or obligations that are outside the ordinary course of business and not justified by the facts and circumstances of the case, including transfers made to, or obligations incurred for the benefit of, officers, managers, or consultants hired after the date of the filing of the petition.’’. SEC. 332. FRAUDULENT INVOLUNTARY BANKRUPTCY.
(a) SHORT TITLE.—This section may be cited as the ‘‘Involuntary Bankruptcy Improvement Act of 2005’’. (b) INVOLUNTARY CASES.—Section 303 of title 11, United States Code, is amended by adding at the end the following: ‘‘(l)(1) If— ‘‘(A) the petition under this section is false or contains any materially false, fictitious, or fraudulent statement; ‘‘(B) the debtor is an individual; and ‘‘(C) the court dismisses such petition, the court, upon the motion of the debtor, shall seal all the records of the court relating to such petition, and all references to such petition. ‘‘(2) If the debtor is an individual and the court dismisses a petition under this section, the court may enter an order prohibiting all consumer reporting agencies (as defined in section 603(f) of the Fair Credit Reporting Act (15 U.S.C. 1681a(f))) from making any consumer report (as defined in section 603(d) of that Act) that contains any information relating to such petition or to the case commenced by the filing of such petition. ‘‘(3) Upon the expiration of the statute of limitations described in section 3282 of title 18, for a violation of section 152 or 157 of such title, the court, upon the motion of the debtor and for good cause, may expunge any records relating to a petition filed under this section.’’. (c) BANKRUPTCY FRAUD.—Section 157 of title 18, United States Code, is amended by inserting ‘‘, including a fraudulent involuntary bankruptcy petition under section 303 of such title’’ after ‘‘title 11’’.
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Involuntary Bankruptcy Improvement Act of 2005. 11 USC 101 note.
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