PROTECTION OF CHILD SUPPORT AND ALIMONY.

SEC. 304. PROTECTION OF CHILD SUPPORT AND ALIMONY. (a) Definition.— Section 101 of title 11, United States Code, is amended by inserting after paragraph (12) the following: “(12A) ‘debt for child support’ means a debt of a kind specified in section 523(a)(5) of this title for maintenance or support of a child of the debtor,”. (b) Relief From Automatic Stay.— Section 362(b)(2) of title 11, United States Code, is amended to read as follows: “(2) under subsection (a) of this section— “(A) of the commencement or continuation of an action or proceeding for— “(i) the establishment of paternity; or “(ii) the establishment or modification of an order for alimony, maintenance, or support; or “(B) of the collection of alimony, maintenance, or support from property that is not property of the estate;”. (c) Priority of Claims.— Section 507(a) of title 11, United States Code, is amended— (1) in paragraph (8) by striking “(8) Eighth” and inserting “(9) Ninth”, (2) in paragraph (7) by striking “(7) Seventh” and inserting “(8) Eighth”, and (3) by inserting after paragraph (6) the following: “(7) Seventh, allowed claims for debts 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 108 STAT. 4133or territorial law by a governmental unit, or property settlement agreement, but not to the extent that such debt— “(A) is assigned to another, entity, voluntarily, by operation of law, or otherwise; or “(B) includes a liability designated as alimony, maintenance, or support, unless such liability is actually 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 “lien” 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 unit 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)(1) by striking “or (6)” each place it appears and inserting “(6), or (15)”. (f) 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 paragraph (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 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, but not to the extent that such debt— 108 STAT. 4134 “(A) is assigned to another entity, voluntarily, by operation of law, or otherwise; or “(B) includes a liability designated as alimony, maintenance, or support, unless such liability is actually in the nature of alimony, maintenance or support; or”. (g) Appearance Before Court.— Child support creditors or their representatives shall be permitted to appear and intervene without charge, and without meeting any special local court rule requirement for attorney appearances, in any bankruptcy case or proceeding in any bankruptcy court or district court of the United States if such creditors or representatives file a form in such court that contains information detailing the child support debt, its status, and other characteristics. (h) Conforming Amendments.— Title 11 of the United States Code is amended— (1) in section 502(i) by striking “507(a)(7)” and inserting “507(a)(8)”, (2) in section 5O3(b)(1)(B)(i) by striking “507(a)(7)” and inserting “507(a)(8)”, (3) in section 523(a)(1)(A) by striking “507(a)(7)” and inserting “507(a)(8)”, (4) in section 724(b)(2) by striking “or 507(a)(6)” and inserting “507(a)(6), or 507(a)(7)”, (5) in section 726(b) by striking “or (7)” and inserting “, (7), or(8)”, (6) in section 1123(a)(1) by striking “507(a)(7)” and inserting “507(a)(8)”, (7) in section 1129(a)(9)— (i) in subparagraph (B) by striking “or 507(a)(6)” and inserting “, 507(a)(6), or 507(a)(7)”, and (ii) in subparagraph (C) by striking “507(a)(7)” and inserting “507(a)(8)”.