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S. 2820 (107th): A bill to increase the priority dollar amount for unsecured claims, and for other purposes.


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

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.’.