GIVING SECURED CREDITORS FAIR TREATMENT IN CHAPTER 13.

SEC. 306. GIVING SECURED CREDITORS FAIR TREATMENT IN CHAPTER 13.(a) In General.—Section 1325(a)(5)(B)(i) of title 11, United States Code, is amended to read as follows:“(i) the plan provides that—“(I) the holder of such claim retain the lien securing such claim until the earlier of—“(aa) the payment of the underlying debt determined under nonbankruptcy law; or “(bb) discharge under section 1328; and “(II) if the case under this chapter is dismissed or converted without completion of the plan, such lien shall also be retained by such holder to the extent recognized by applicable nonbankruptcy law; and”.(b) Restoring the Foundation for Secured Credit.—Section 1325(a) of title 11, United States Code, is amended by adding at the end the following:“For purposes of paragraph (5), section 506 shall not apply to a claim described in that paragraph if the creditor has a purchase money security interest securing the debt that is the subject of the claim, the debt was incurred within the 910-day preceding the date of the filing of the petition, and the collateral for that debt consists of a motor vehicle (as defined in section 30102 of title 49) acquired for the personal use of the debtor, or if collateral for that debt consists of any other thing of value, if the debt was incurred during the 1-year period preceding that filing.”. (c) Definitions.—Section 101 of title 11, United States Code, is amended—(1) by inserting after paragraph (13) the following:119 STAT. 81 “(13A) ‘debtor’s principal residence’—“(A) means a residential structure, including incidental property, without regard to whether that structure is attached to real property; and“(B) includes an individual condominium or cooperative unit, a mobile or manufactured home, or trailer;”; and(2) by inserting after paragraph (27), the following:“(27A) ‘incidental property’ means, with respect to a debtor’s principal residence—“(A) property commonly conveyed with a principal residence in the area where the real property is located; “(B) all easements, rights, appurtenances, fixtures, rents, royalties, mineral rights, oil or gas rights or profits, water rights, escrow funds, or insurance proceeds; and“(C) all replacements or additions;”.