The text of the bill below is as of Jul 30, 2002 (Introduced). The bill was not enacted into law.
S 2820 IS
107th CONGRESS
2d Session
S. 2820
To increase the priority dollar amount for unsecured claims, and for other purposes.
IN THE SENATE OF THE UNITED STATES
July 30, 2002
July 30, 2002
Mrs. CARNAHAN (for herself and Mr. LEAHY) introduced the following bill; which was read twice and referred to the Committee on the Judiciary
A BILL
To increase the priority dollar amount for unsecured claims, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. FAIR TREATMENT OF COMPENSATION IN BANKRUPTCY.
(a) INCREASED PRIORITY CLAIM AMOUNT FOR EMPLOYEE WAGES AND BENEFITS- Section 507(a) of title 11, United States Code, is amended--
(1) in paragraph (3), by striking ‘$4,000’ and inserting ‘$13,500’; and
(2) in paragraph (4), by striking ‘$4,000’ and inserting ‘$13,500’.
(b) RECOVERY OF EXCESSIVE COMPENSATION- Section 547 of title 11, United States Code, is amended by adding at the end the following:
‘(h) The court, on motion of a party of interest, may avoid any transfer of compensation made to a present or former employee, officer, or member of the board of directors of the debtor on or within 90 days before the date of the filing of the petition that the court finds, after notice and a hearing, to be--
‘(1) out of the ordinary course of business; or
‘(2) unjust enrichment.’.
