Title I: Retiree Insurance - Amends Federal bankruptcy provisions to provide for the representation of retirees in reorganization cases with regard to retiree benefits. Defines "retiree benefits" as benefits provided for retired employees and their spouses and dependents for medical, surgical, or hospital care benefits, or benefits provided in the event of sickness, accident, disability, or death under any plan, fund, or program (through the purchase of insurance or otherwise) maintained or established by the debtor prior to filing a petition commencing a reorganization case.

Specifies that a labor organization shall be the authorized representative of retirees who receive benefits covered by any collective bargaining agreement to which the labor organization is a signatory unless such labor organization elects not to serve as the authorized representative or the bankruptcy court determines that different representation is appropriate. Requires the bankruptcy court to appoint a committee of retirees as an authorized representative in cases where there is no collective bargaining agreement or where a labor union does not represent retirees.

Requires the debtor in possession or trustee in a reorganization case to pay and not modify any retiree benefits. Allows modification of such benefits: (1) by court order; or (2) as agreed to by the trustee and the authorized representative of benefit recipients. Treats such payments as administrative expenses before confirmation of a reorganization plan.

Requires that prior to filing an application seeking modification of retiree benefits a trustee must: (1) make a proposal to the authorized representatives of the retirees; and (2) provide such representative with such relevant information as is necessary to evaluate the proposal. Requires the trustee to meet with the authorized representative to confer in good faith in attempting to reach mutually satisfactory modifications of such retiree benefits.

Directs a bankruptcy court to provide for the modification of retiree benefits if the court finds that: (1) the trustee has made a proposal that meets the requirements of this Act; (2) the authorized representative of the retirees has refused to accept such proposal without good cause; and (3) such modification is necessary to permit the reorganization of the debtor and assures that all creditors, the debtor, and all of the affected parties are treated fairly and equitably, and is clearly favored by the balance of the equities. Prohibits a bankruptcy court from modifying such benefits to a level lower than the trustee's offer. Allows an authorized representative, at any time after a modification of benefits is allowed, to apply for an order increasing such benefits. Requires that such an order be granted if the increase in retiree benefits sought is consistent with specified standards. Authorizes a bankruptcy court to allow a trustee to implement an interim modification to retiree benefits prior to the court's issuance of an order providing for modifications if such modification is essential to the continuation of the debtor's business or to prevent irreparable damage to the estate.

Provides that retirees shall have an unsecured claim for the full amount of any unpaid benefits.

Specifies that provisions limiting employment contract termination claims shall not limit retiree benefit claims.

Sets forth procedural requirements concerning the modification of retiree benefits.

Excludes from coverage concerning retiree benefits, any retiree whose annual gross income is $250,000 or more, unless the retiree can show that he or she is unable to obtain comparable insurance coverage.

Provides that the provisions of this Act shall apply to companies which were paying retiree benefits on or after October 2, 1986, if a reorganization plan was not confirmed as of June 23, 1987.

Title II: Expanded Application of Certain Bankruptcy Amendments Relating to Family Farmers - Specifies that certain provisions of Federal bankruptcy law relating to family farmers shall apply to reorganization cases which are pending or reviewable on appeal without regard to whether such cases were commenced before November 26, 1986.

Title III: Nondischargeability of Certain Debts for Restitution - Makes nondischargeable in bankruptcy any debt arising from: (1) a violation by the debtor of a civil or criminal law enforceable by a government action to recover restitution; or (2) an agreed judgment or other agreement by the debtor to pay money or transfer property in settlement of such action.

Title IV: Student Loans - Student Loan Bankruptcy Prevention Act - Exempts student loans made, insured, or guaranteed by a governmental unit from the debts which may be discharged in a chapter 13 (adjustment of debts of individuals with regular income) bankruptcy claim.

Title V: Additional Bankruptcy Judges - Amends the judicial code to provide for an additional bankruptcy judge for the judicial district of Arizona and for the judicial district of Colorado.

Title I: Retiree Insurance - Amends Federal bankruptcy provisions to provide for the representation of retirees in reorganization cases with regard to retiree benefits. Defines "retiree benefits" as benefits provided for retired employees and their spouses and dependents for medical, surgical, or hospital care benefits, or benefits provided in the event of sickness, accident, disability, or death under any plan, fund, or program (through the purchase of insurance or otherwise) maintained or established by the debtor prior to filing a petition commencing a reorganization case.

Specifies that a labor organization shall be the authorized representative of retirees who receive benefits covered by any collective bargaining agreement to which the labor organization is a signatory unless such labor organization elects not to serve as the authorized representative or the bankruptcy court determines that different representation is appropriate. Requires the bankruptcy court to appoint a committee of retirees as an authorized representative in cases where there is no collective bargaining agreement or where a labor union does not represent retirees.

Requires the debtor in possession or trustee in a reorganization case to pay and not modify any retiree benefits. Allows modification of such benefits: (1) by court order; or (2) as agreed to by the trustee and the authorized representative of benefit recipients. Treats such payments as administrative expenses before confirmation of a reorganization plan.

Requires that prior to filing an application seeking modification of retiree benefits a trustee must: (1) make a proposal to the authorized representatives of the retirees; and (2) provide such representative with such relevant information as is necessary to evaluate the proposal. Requires the trustee to meet with the authorized representative to confer in good faith in attempting to reach mutually satisfactory modifications of such retiree benefits.

Directs a bankruptcy court to provide for the modification of retiree benefits if the court finds that: (1) the trustee has made a proposal that meets the requirements of this Act; (2) the authorized representative of the retirees has refused to accept such proposal without good cause; and (3) such modification is necessary to permit the reorganization of the debtor and assures that all creditors, the debtor, and all of the affected parties are treated fairly and equitably, and is clearly favored by the balance of the equities. Prohibits a bankruptcy court from modifying such benefits to a level lower than the trustee's offer. Allows an authorized representative, at any time after a modification of benefits is allowed, to apply for an order increasing such benefits. Requires that such an order be granted if the increase in retiree benefits sought is consistent with specified standards. Authorizes a bankruptcy court to allow a trustee to implement an interim modification to retiree benefits prior to the court's issuance of an order providing for modifications if such modification is essential to the continuation of the debtor's business or to prevent irreparable damage to the estate.

Provides that retirees shall have an unsecured claim for the full amount of any unpaid benefits.

Specifies that provisions limiting employment contract termination claims shall not limit retiree benefit claims.

Sets forth procedural requirements concerning the modification of retiree benefits.

Excludes from coverage concerning retiree benefits, any retiree whose annual gross income is $1,000,000 or more, unless the retiree can show that he or she is unable to obtain comparable insurance coverage.

Provides that the provisions of this Act shall apply to companies which were paying retiree benefits on or after October 2, 1986, if a reorganization plan was not confirmed as of June 23, 1987.

Title II: Expanded Application of Certain Bankruptcy Amendments Relating to Family Farmers - Specifies that certain provisions of Federal bankruptcy law relating to family farmers shall apply to reorganization cases which are pending or reviewable on appeal without regard to whether such cases were commenced before November 26, 1986.

Title III: Nondischargeability of Certain Debts for Restitution - Makes nondischargeable in bankruptcy any debt arising from: (1) a violation by the debtor of a civil or criminal law enforceable by a government action to recover restitution; or (2) an agreed judgment or other agreement by the debtor to pay money or transfer property in settlement of such action.

Retiree Benefits Security Act of 1987 - Amends Federal bankruptcy law to apply provisions governing the rejection of collective bargaining agreements in reorganization cases to collective bargaining agreement provisions relating to benefits for retired employees.

Provides that bankruptcy claims for retiree benefits and claims arising under any collective bargaining agreement or rejection thereof shall not be limited to one year's compensation.

Designates the labor organization which is the recognized exclusive collective bargaining representative in a collective bargaining agreement as the authorized representative of persons receiving retirement benefits under such agreement in bankruptcy proceedings. Directs the court to appoint a committee of retirees to serve as such representative if the labor organization elects not to serve or if the recipients of retiree benefits are not covered by a collective bargaining agreement.

Requires the debtor in possession or trustee in a reorganization case to pay and not modify any retiree benefits under any program established or maintained by the debtor prior to filing a bankruptcy petition. Allows modification of such benefits: (1) by court order; or (2) as agreed to by the trustee and the authorized representative of benefit recipients. Treats such payments as administrative expenses. Permits the court to order a modification in retiree benefit payments only if: (1) with respect to benefits covered by a collective bargaining agreement, such agreement is rejected in bankruptcy; and (2) with respect to benefits whether covered or not, the court finds that modifications are necessary to permit the reorganization of the debtor and to assure that all creditors, the debtor, and all affected parties are treated fairly and equitably and that the balance of equities clearly favors the modification sought by the trustee. Permits the court, before issuing a final order, to authorize the trustee to implement interim changes in benefits not provided by a collective bargaining agreement, if essential to the continuation of the debtor's business, or in order to avoid irreparable damage to the estate.

Provides that any retiree benefits paid between the filing of a petition and confirmation of a plan shall not be deducted from amounts calculated for claims for unpaid future retiree benefits or for any benefits not provided due to modifications, unless otherwise agreed by the debtor and the authorized representative.

Requires a reorganization plan to place all claimants for retiree benefits in a separate class consisting only of such claimants. Requires that a plan, to be fair and equitable with respect to such claimants: (1) provide that each claim holder of such class receive property of a value equal to the allowed amount of such claim; or (2) provide that each claim holder of such class receive such value as found by the court to represent the minimum reduction in retiree benefits consistent with the ability of the debtor to provide such benefits after plan confirmation.

Provides for the retroactive application of this Act.