PROMOTION OF ALTERNATIVE DISPUTE RESOLUTION.

SEC. 201. PROMOTION OF ALTERNATIVE DISPUTE RESOLUTION.(a) Reduction of Claim.—Section 502 of title 11, United States Code, is amended by adding at the end the following:“(k)(1) The court, on the motion of the debtor and after a hearing, may reduce a claim filed under this section based in whole on an unsecured consumer debt by not more than 20 percent of the claim, if—“(A) the claim was filed by a creditor who unreasonably refused to negotiate a reasonable alternative repayment schedule proposed on behalf of the debtor by an approved nonprofit budget and credit counseling agency described in section 111; “(B) the offer of the debtor under subparagraph (A)—“(i) was made at least 60 days before the date of the filing of the petition; and“(ii) provided for payment of at least 60 percent of the amount of the debt over a period not to exceed the repayment period of the loan, or a reasonable extension thereof; and“(C) no part of the debt under the alternative repayment schedule is nondischargeable.“(2) The debtor shall have the burden of proving, by clear and convincing evidence, that—“(A) the creditor unreasonably refused to consider the debtor’s proposal; and“(B) the proposed alternative repayment schedule was made prior to expiration of the 60-day period specified in paragraph (1)(B)(i).”.(b) Limitation on Avoidability.—Section 547 of title 11, United States Code, is amended by adding at the end the following:“(h) The trustee may not avoid a transfer if such transfer was made as a part of an alternative repayment schedule between the debtor and any creditor of the debtor created by an approved nonprofit budget and credit counseling agency.”.119 STAT. 43