Legal corpus: U.S. Code titles 1–11 from pinned OLRC XML (11,050 sections)
Raw OLRC USLM XML zips @ release 119-100 (retrieved 2026-07-04 via Atlas depot), ingested with the standard pipeline: raw snapshot -> per-section OKF markdown -> manifest + checksums. Title 52 untouched. LegalText: 171 -> 11,221. Titles 12-54 await a clean OLRC retry. Co-Authored-By: Claude Opus 4.8 <noreply@anthropic.com>
This commit is contained in:
Fabio
@@ -0,0 +1,65 @@
|
||||
---
|
||||
type: "LegalText"
|
||||
title: "11 U.S.C. § 501"
|
||||
description: "Filing of proofs of claims or interests"
|
||||
jurisdiction: "us"
|
||||
corpus: "united_states_code"
|
||||
kind: "code_section"
|
||||
title_number: 11
|
||||
title_name: "BANKRUPTCY"
|
||||
chapter_number: "5"
|
||||
chapter_name: "CREDITORS, THE DEBTOR, AND THE ESTATE"
|
||||
section: "501"
|
||||
citation: "11 U.S.C. § 501"
|
||||
status: "current"
|
||||
release_point: "119-100"
|
||||
release_date: "2026-06-26"
|
||||
source: "official"
|
||||
source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc11@119-100.zip"
|
||||
source_identifier: "/us/usc/t11/s501"
|
||||
source_file: "data/legal/raw/us/code/title-11/usc11.xml"
|
||||
source_hash: "8f8f0561dbf418e8a9a3fcf8aa92f28acb044e2bb844293be4834594299a1f68"
|
||||
raw_snapshot_hash: "49b32bf784de01de21874d64b5d1d78d1d245352824a03caa6d6b941a4a2c9a2"
|
||||
text_hash: "7b9ba89e0190bffe25f16f75d51c454f3d8f169421c837df7baf46d5ba4d4b4c"
|
||||
retrieved_at: "2026-07-04"
|
||||
confidence: "official"
|
||||
tags: ["legal", "us-code"]
|
||||
---
|
||||
|
||||
# 11 U.S.C. § 501 - Filing of proofs of claims or interests
|
||||
|
||||
## Text
|
||||
|
||||
(a) A creditor or an indenture trustee may file a proof of claim. An equity security holder may file a proof of interest.
|
||||
|
||||
(b) If a creditor does not timely file a proof of such creditor’s claim, an entity that is liable to such creditor with the debtor, or that has secured such creditor, may file a proof of such claim.
|
||||
|
||||
(c) If a creditor does not timely file a proof of such creditor’s claim, the debtor or the trustee may file a proof of such claim.
|
||||
|
||||
(d) A claim of a kind specified in section 502(e)(2), 502(f), 502(g), 502(h) or 502(i) of this title may be filed under subsection (a), (b), or (c) of this section the same as if such claim were a claim against the debtor and had arisen before the date of the filing of the petition.
|
||||
|
||||
(e) A claim arising from the liability of a debtor for fuel use tax assessed consistent with the requirements of section 31705 of title 49 may be filed by the base jurisdiction designated pursuant to the International Fuel Tax Agreement (as defined in section 31701 of title 49) and, if so filed, shall be allowed as a single claim.
|
||||
|
||||
(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2578; Pub. L. 98–353, title III, § 444, July 10, 1984, 98 Stat. 373; Pub. L. 109–8, title VII, § 702, Apr. 20, 2005, 119 Stat. 125; Pub. L. 116–260, div. FF, title X, § 1001(d)(1), (3)(A), Dec. 27, 2020, 134 Stat. 3217, 3218.)
|
||||
|
||||
## Notes
|
||||
|
||||
Historical and Revision Notes
|
||||
|
||||
legislative statementsThe House amendment adopts section 501(b) of the Senate amendment leaving the Rules of Bankruptcy Procedure free to determine where a proof of claim must be filed. Section 501(c) expands language contained in section 501(c) of the House bill and Senate amendment to permit the debtor to file a proof of claim if a creditor does not timely file a proof of the creditor’s claim in a case under title 11. The House amendment deletes section 501(e) of the Senate amendment as a matter to be left to the rules of bankruptcy procedure. It is anticipated that the rules will enable governmental units, like other creditors, to have a reasonable time to file proofs of claim in bankruptcy cases. For purposes of section 501, a proof of “interest” includes the interest of a general or limited partner in a partnership, the interest of a proprietor in a sole proprietorship, or the interest of a common or preferred stockholder in a corporation.
|
||||
|
||||
senate report no. 95–989This section governs the means by which creditors and equity security holders present their claims or interests to the court. Subsection (a) permits a creditor to file a proof of claim or interest. An indenture trustee representing creditors may file a proof of claim on behalf of the creditors he represents. This subsection is permissive only, and does not require filing of a proof of claim by any creditor. It permits filing where some purpose would be served, such as where a claim that appears on a list filed under proposed 11 U.S.C. 924 or 1111 was incorrectly stated or listed as disputed, contingent, or unliquidated, where a creditor with a lien is undersecured and asserts a claim for the balance of the debt owed him (his unsecured claim, as determined under proposed 11 U.S.C. 506(a)), or in a liquidation case where there will be a distribution of assets to the holders of allowed claims. In other instances, such as in no-asset liquidation cases, in situations where a secured creditor does not assert any claim against the estate and a determination of his claim is not made under proposed 11 U.S.C. 506, or in situations where the claim asserted would be subordinated and the creditor would not recover from the estate in any event, filing of a proof of claim may simply not be necessary. The Rules of Bankruptcy Procedure and practice under the law will guide creditors as to when filing is necessary and when it may be dispensed with. In general, however, unless a claim is listed in a chapter 9 or chapter 11 case and allowed as a result of the list, a proof of claim will be a prerequisite to allowance for unsecured claims, including priority claims and the unsecured portion of a claim asserted by the holder of a lien. The Rules of Bankruptcy Procedure will set the time limits, the form, and the procedure for filing, which will determine whether claims are timely or tardily filed. The rules governing time limits for filing proofs of claims will continue to apply under section 405(d) of the bill. These provide a 6-month-bar date for the filing of tax claims. Subsection (b) permits a codebtor, surety, or guarantor to file a proof of claim on behalf of the creditor to which he is liable if the creditor does not timely file a proof of claim. In liquidation and individual repayment plan cases, the trustee or the debtor may file a proof of claim under subsection (c) if the creditor does not timely file. The purpose of this subsection is mainly to protect the debtor if the creditor’s claim is nondischargeable. If the creditor does not file, there would be no distribution on the claim, and the debtor would have a greater debt to repay after the case is closed than if the claim were paid in part or in full in the case or under the plan. Subsection (d) governs the filing of claims of the kind specified in subsections (f), (g), (h), (i), or (j) of proposed 11 U.S.C. 502. The separation of this provision from the other claim-filing provisions in this section is intended to indicate that claims of the kind specified, which do not become fixed or do not arise until after the commencement of the case, must be treated differently for filing purposes such as the bar date for filing claims. The rules will provide for later filing of claims of these kinds. Subsection (e) gives governmental units (including tax authorities) at least six months following the date for the first meeting of creditors in a chapter 7 or chapter 13 case within which to file proof of claims.
|
||||
|
||||
Editorial Notes
|
||||
|
||||
Amendments2020—Subsec. (f). Pub. L. 116–260, § 1001(d)(3)(A), struck out subsec. (f) which related to CARES forbearance claims. Pub. L. 116–260, § 1001(d)(1), added subsec. (f). 2005—Subsec. (e). Pub. L. 109–8 added subsec. (e). 1984—Subsec. (d). Pub. L. 98–353 inserted “502(e)(2),”.
|
||||
|
||||
Statutory Notes and Related Subsidiaries
|
||||
|
||||
Effective Date of 2020 AmendmentPub. L. 116–260, div. FF, title X, § 1001(d)(3), Dec. 27, 2020, 134 Stat. 3218, provided that the amendment made by section 1001(d)(3)(A) is effective on the date that is 1 year after Dec. 27, 2020.
|
||||
|
||||
Effective Date of 2005 AmendmentAmendment by Pub. L. 109–8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of this title.
|
||||
|
||||
Effective Date of 1984 AmendmentAmendment by Pub. L. 98–353 effective with respect to cases filed 90 days after July 10, 1984, see section 552(a) of Pub. L. 98–353, set out as a note under section 101 of this title.
|
||||
|
||||
Child Support Creditors or Their Representatives; Appearance Before CourtPub. L. 103–394, title III, § 304(g), Oct. 22, 1994, 108 Stat. 4134, provided that: “Child support creditors or their representatives shall be permitted to appear and intervene without charge, and without meeting any special local court rule requirement for attorney appearances, in any bankruptcy case or proceeding in any bankruptcy court or district court of the United States if such creditors or representatives file a form in such court that contains information detailing the child support debt, its status, and other characteristics.”
|
||||
File diff suppressed because one or more lines are too long
@@ -0,0 +1,131 @@
|
||||
---
|
||||
type: "LegalText"
|
||||
title: "11 U.S.C. § 503"
|
||||
description: "Allowance of administrative expenses"
|
||||
jurisdiction: "us"
|
||||
corpus: "united_states_code"
|
||||
kind: "code_section"
|
||||
title_number: 11
|
||||
title_name: "BANKRUPTCY"
|
||||
chapter_number: "5"
|
||||
chapter_name: "CREDITORS, THE DEBTOR, AND THE ESTATE"
|
||||
section: "503"
|
||||
citation: "11 U.S.C. § 503"
|
||||
status: "current"
|
||||
release_point: "119-100"
|
||||
release_date: "2026-06-26"
|
||||
source: "official"
|
||||
source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc11@119-100.zip"
|
||||
source_identifier: "/us/usc/t11/s503"
|
||||
source_file: "data/legal/raw/us/code/title-11/usc11.xml"
|
||||
source_hash: "0f8b944e7dd016f9cf1f0dbe8d5651531734dbbb80f3aa19a84525a43ddd81c0"
|
||||
raw_snapshot_hash: "49b32bf784de01de21874d64b5d1d78d1d245352824a03caa6d6b941a4a2c9a2"
|
||||
text_hash: "b6360870434e2b7e3a6881c74fe3071dc06f6e39d46942d0fb3f3c0e0fad4f8a"
|
||||
retrieved_at: "2026-07-04"
|
||||
confidence: "official"
|
||||
tags: ["legal", "us-code"]
|
||||
---
|
||||
|
||||
# 11 U.S.C. § 503 - Allowance of administrative expenses
|
||||
|
||||
## Text
|
||||
|
||||
(a) An entity may timely file a request for payment of an administrative expense, or may tardily file such request if permitted by the court for cause.
|
||||
|
||||
(b) After notice and a hearing, there shall be allowed administrative expenses, other than claims allowed under section 502(f) of this title, including—
|
||||
|
||||
(1) (A) the actual, necessary costs and expenses of preserving the estate including—
|
||||
|
||||
(i) wages, salaries, and commissions for services rendered after the commencement of the case; and
|
||||
|
||||
(ii) wages and benefits awarded pursuant to a judicial proceeding or a proceeding of the National Labor Relations Board as back pay attributable to any period of time occurring after commencement of the case under this title, as a result of a violation of Federal or State law by the debtor, without regard to the time of the occurrence of unlawful conduct on which such award is based or to whether any services were rendered, if the court determines that payment of wages and benefits by reason of the operation of this clause will not substantially increase the probability of layoff or termination of current employees, or of nonpayment of domestic support obligations, during the case under this title;
|
||||
|
||||
(B) any tax—
|
||||
|
||||
(i) incurred by the estate, whether secured or unsecured, including property taxes for which liability is in rem, in personam, or both, except a tax of a kind specified in section 507(a)(8) of this title; or
|
||||
|
||||
(ii) attributable to an excessive allowance of a tentative carryback adjustment that the estate received, whether the taxable year to which such adjustment relates ended before or after the commencement of the case;
|
||||
|
||||
(C) any fine, penalty, or reduction in credit relating to a tax of a kind specified in subparagraph (B) of this paragraph; and
|
||||
|
||||
(D) notwithstanding the requirements of subsection (a), a governmental unit shall not be required to file a request for the payment of an expense described in subparagraph (B) or (C), as a condition of its being an allowed administrative expense;
|
||||
|
||||
(2) compensation and reimbursement awarded under section 330(a) of this title;
|
||||
|
||||
(3) the actual, necessary expenses, other than compensation and reimbursement specified in paragraph (4) of this subsection, incurred by—
|
||||
|
||||
(A) a creditor that files a petition under section 303 of this title;
|
||||
|
||||
(B) a creditor that recovers, after the court’s approval, for the benefit of the estate any property transferred or concealed by the debtor;
|
||||
|
||||
(C) a creditor in connection with the prosecution of a criminal offense relating to the case or to the business or property of the debtor;
|
||||
|
||||
(D) a creditor, an indenture trustee, an equity security holder, or a committee representing creditors or equity security holders other than a committee appointed under section 1102 of this title, in making a substantial contribution in a case under chapter 9 or 11 of this title;
|
||||
|
||||
(E) a custodian superseded under section 543 of this title, and compensation for the services of such custodian; or
|
||||
|
||||
(F) a member of a committee appointed under section 1102 of this title, if such expenses are incurred in the performance of the duties of such committee;
|
||||
|
||||
(4) reasonable compensation for professional services rendered by an attorney or an accountant of an entity whose expense is allowable under subparagraph (A), (B), (C), (D), or (E) of paragraph (3) of this subsection, based on the time, the nature, the extent, and the value of such services, and the cost of comparable services other than in a case under this title, and reimbursement for actual, necessary expenses incurred by such attorney or accountant;
|
||||
|
||||
(5) reasonable compensation for services rendered by an indenture trustee in making a substantial contribution in a case under chapter 9 or 11 of this title, based on the time, the nature, the extent, and the value of such services, and the cost of comparable services other than in a case under this title;
|
||||
|
||||
(6) the fees and mileage payable under chapter 119 of title 28;
|
||||
|
||||
(7) with respect to a nonresidential real property lease previously assumed under section 365, and subsequently rejected, a sum equal to all monetary obligations due, excluding those arising from or relating to a failure to operate or a penalty provision, for the period of 2 years following the later of the rejection date or the date of actual turnover of the premises, without reduction or setoff for any reason whatsoever except for sums actually received or to be received from an entity other than the debtor, and the claim for remaining sums due for the balance of the term of the lease shall be a claim under section 502(b)(6);
|
||||
|
||||
(8) the actual, necessary costs and expenses of closing a health care business incurred by a trustee or by a Federal agency (as defined in section 551(1) of title 5) or a department or agency of a State or political subdivision thereof, including any cost or expense incurred—
|
||||
|
||||
(A) in disposing of patient records in accordance with section 351; or
|
||||
|
||||
(B) in connection with transferring patients from the health care business that is in the process of being closed to another health care business; and
|
||||
|
||||
(9) the value of any goods received by the debtor within 20 days before the date of commencement of a case under this title in which the goods have been sold to the debtor in the ordinary course of such debtor’s business.
|
||||
|
||||
(c) Notwithstanding subsection (b), there shall neither be allowed, nor paid—
|
||||
|
||||
(1) a transfer made to, or an obligation incurred for the benefit of, an insider of the debtor for the purpose of inducing such person to remain with the debtor’s business, absent a finding by the court based on evidence in the record that—
|
||||
|
||||
(A) the transfer or obligation is essential to retention of the person because the individual has a bona fide job offer from another business at the same or greater rate of compensation;
|
||||
|
||||
(B) the services provided by the person are essential to the survival of the business; and
|
||||
|
||||
(C) either—
|
||||
|
||||
(i) the amount of the transfer made to, or obligation incurred for the benefit of, the person is not greater than an amount equal to 10 times the amount of the mean transfer or obligation of a similar kind given to nonmanagement employees for any purpose during the calendar year in which the transfer is made or the obligation is incurred; or
|
||||
|
||||
(ii) if no such similar transfers were made to, or obligations were incurred for the benefit of, such nonmanagement employees during such calendar year, the amount of the transfer or obligation is not greater than an amount equal to 25 percent of the amount of any similar transfer or obligation made to or incurred for the benefit of such insider for any purpose during the calendar year before the year in which such transfer is made or obligation is incurred;
|
||||
|
||||
(2) a severance payment to an insider of the debtor, unless—
|
||||
|
||||
(A) the payment is part of a program that is generally applicable to all full-time employees; and
|
||||
|
||||
(B) the amount of the payment is not greater than 10 times the amount of the mean severance pay given to nonmanagement employees during the calendar year in which the payment is made; or
|
||||
|
||||
(3) other transfers or obligations that are outside the ordinary course of business and not justified by the facts and circumstances of the case, including transfers made to, or obligations incurred for the benefit of, officers, managers, or consultants hired after the date of the filing of the petition.
|
||||
|
||||
(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2581; Pub. L. 98–353, title III, § 446, July 10, 1984, 98 Stat. 374; Pub. L. 99–554, title II, § 283(g), Oct. 27, 1986, 100 Stat. 3117; Pub. L. 103–394, title I, § 110, title II, § 213(c), title III, § 304(h)(2), Oct. 22, 1994, 108 Stat. 4113, 4126, 4134; Pub. L. 109–8, title III, §§ 329, 331, title IV, § 445, title VII, § 712(b), (c), title XI, § 1103, title XII, §§ 1208, 1227(b), Apr. 20, 2005, 119 Stat. 101, 102, 117, 128, 190, 194, 200; Pub. L. 116–260, div. N, title III, § 320(b), (f)(2)(A)(ii), Dec. 27, 2020, 134 Stat. 2015, 2016.)
|
||||
|
||||
## Notes
|
||||
|
||||
Historical and Revision Notes
|
||||
|
||||
legislative statementsSection 503(a) of the House amendment represents a compromise between similar provisions in the House bill and the Senate amendment by leaving to the Rules of Bankruptcy Procedure the determination of the location at which a request for payment of an administrative expense may be filed. The preamble to section 503(b) of the House bill makes a similar change with respect to the allowance of administrative expenses. Section 503(b)(1) adopts the approach taken in the House bill as modified by some provisions contained in the Senate amendment. The preamble to section 503(b) makes clear that none of the paragraphs of section 503(b) apply to claims or expenses of the kind specified in section 502(f) that arise in the ordinary course of the debtor’s business or financial affairs and that arise during the gap between the commencement of an involuntary case and the appointment of a trustee or the order for relief, whichever first occurs. The remainder of section 503(b) represents a compromise between H.R. 8200 as passed by the House and the Senate amendments. Section 503(b)(3)(E) codifies present law in cases such as Randolph v. Scruggs, 190 U.S. 533, which accords administrative expense status to services rendered by a prepetition custodian or other party to the extent such services actually benefit the estate. Section 503(b)(4) of the House amendment conforms to the provision contained in H.R. 8200 as passed by the House and deletes language contained in the Senate amendment providing a different standard of compensation under section 330 of that amendment.
|
||||
|
||||
senate report no. 95–989Subsection (a) of this section permits administrative expense claimants to file with the court a request for payment of an administrative expense. The Rules of Bankruptcy Procedure will specify the time, the form, and the method of such a filing. Subsection (b) specifies the kinds of administrative expenses that are allowable in a case under the bankruptcy code. The subsection is derived mainly from section 64a(1) of the Bankruptcy Act [section 104(a)(1) of former title 11], with some changes. The actual, necessary costs and expenses of preserving the estate, including wages, salaries, or commissions for services rendered after the order for relief, and any taxes on, measured by, or withheld from such wages, salaries, or commissions, are allowable as administrative expenses. In general, administrative expenses include taxes which the trustee incurs in administering the debtor’s estate, including taxes on capital gains from sales of property by the trustee and taxes on income earned by the estate during the case. Interest on tax liabilities and certain tax penalties incurred by the trustee are also included in this first priority. Taxes which the Internal Revenue Service may find due after giving the trustee a so-called “quickie” tax refund and later doing an audit of the refund are also payable as administrative expenses. The tax code [title 26] permits the trustee of an estate which suffers a net operating loss to carry back the loss against an earlier profit year of the estate or of the debtor and to obtain a tentative refund for the earlier year, subject, however, to a later full audit of the loss which led to the refund. The bill, in effect, requires the Internal Revenue Service to issue a tentative refund to the trustee (whether the refund was applied for by the debtor or by the trustee), but if the refund later proves to have been erroneous in amount, the Service can request that the tax attributable to the erroneous refund be payable by the estate as an administrative expense. Postpetition payments to an individual debtor for services rendered to the estate are administrative expenses, and are not property of the estate when received by the debtor. This situation would most likely arise when the individual was a sole proprietor and was employed by the estate to run the business after the commencement of the case. An individual debtor in possession would be so employed, for example. See Local Loan v. Hunt, 292 U.S. 234, 243 (1943). Compensation and reimbursement awarded officers of the estate under section 330 are allowable as administrative expenses. Actual, necessary expenses, other than compensation of a professional person, incurred by a creditor that files an involuntary petition, by a creditor that recovers property for the benefit of the estate, by a creditor that acts in connection with the prosecution of a criminal offense relating to the case, by a creditor, indenture, trustee, equity security holder, or committee of creditors or equity security holders (other than official committees) that makes a substantial contribution to a reorganization or municipal debt adjustment case, or by a superseded custodian, are all allowable administrative expenses. The phrase “substantial contribution in the case” is derived from Bankruptcy Act §§ 242 and 243 [sections 642 and 643 of former title 11]. It does not require a contribution that leads to confirmation of a plan, for in many cases, it will be a substantial contribution if the person involved uncovers facts that would lead to a denial of confirmation, such as fraud in connection with the case. Paragraph (4) permits reasonable compensation for professional services rendered by an attorney or an accountant of an equity whose expense is compensable under the previous paragraph. Paragraph (5) permits reasonable compensation for an indenture trustee in making a substantial contribution in a reorganization or municipal debt adjustment case. Finally, paragraph (6) permits witness fees and mileage as prescribed under chapter 119 [§ 2041 et seq.] of title 28.
|
||||
|
||||
Editorial Notes
|
||||
|
||||
Amendments2020—Subsec. (b). Pub. L. 116–260, § 320(f)(2)(A)(ii), contingent on its addition by Pub. L. 116–260, § 320(b), struck out par. (10) which read as follows: “any debt incurred under section 364(g)(1) of this title.” Pub. L. 116–260, § 320(b), added par. (10). 2005—Subsec. (b)(1)(A). Pub. L. 109–8, § 329, amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “the actual, necessary costs and expenses of preserving the estate, including wages, salaries, or commissions for services rendered after the commencement of the case;”. Subsec. (b)(1)(B)(i). Pub. L. 109–8, § 712(b), inserted “whether secured or unsecured, including property taxes for which liability is in rem, in personam, or both,” before “except”. Subsec. (b)(1)(D). Pub. L. 109–8, § 712(c), added subpar. (D). Subsec. (b)(4). Pub. L. 109–8, § 1208, inserted “subparagraph (A), (B), (C), (D), or (E) of” before “paragraph (3)”. Subsec. (b)(7). Pub. L. 109–8, § 445, added par. (7). Subsec. (b)(8). Pub. L. 109–8, § 1103, added par. (8). Subsec. (b)(9). Pub. L. 109–8, § 1227(b), added par. (9). Subsec. (c). Pub. L. 109–8, § 331, added subsec. (c). 1994—Subsec. (a). Pub. L. 103–394, § 213(c), inserted “timely” after “may” and “, or may tardily file such request if permitted by the court for cause” before period at end. Subsec. (b)(1)(B)(i). Pub. L. 103–394, § 304(h)(2), substituted “507(a)(8)” for “507(a)(7)”. Subsec. (b)(3)(F). Pub. L. 103–394, § 110, added subpar. (F). 1986—Subsec. (b)(1)(B)(i). Pub. L. 99–554, § 283(g)(1), substituted “507(a)(7)” for “507(a)(6)”. Subsec. (b)(5). Pub. L. 99–554, § 283(g)(2), inserted “and” after “title;”. Subsec. (b)(6). Pub. L. 99–554, § 283(g)(3), substituted a period for “; and”. 1984—Subsec. (b). Pub. L. 98–353, § 446(1), struck out the comma after “be allowed” in provisions preceding par. (1). Subsec. (b)(1)(C). Pub. L. 98–353, § 446(2), struck out the comma after “credit”. Subsec. (b)(2). Pub. L. 98–353, § 446(3), inserted “(a)” after “330”. Subsec. (b)(3). Pub. L. 98–353, § 446(4), inserted a comma after “paragraph (4) of this subsection”. Subsec. (b)(3)(C). Pub. L. 98–353, § 446(5), struck out the comma after “case”. Subsec. (b)(5). Pub. L. 98–353, § 446(6), struck out “and” after “title;”. Subsec. (b)(6). Pub. L. 98–353, § 446(7), substituted “; and” for period at end.
|
||||
|
||||
Statutory Notes and Related Subsidiaries
|
||||
|
||||
Effective and Termination Dates of 2020 AmendmentAmendment by section 320(b) of div. N of Pub. L. 116–260 effective on the date on which the Administrator of the Small Business Administration submits to the Director of the Executive Office for United States Trustees a written determination relating to loan eligibility under pars. (36) and (37) of section 636(a) of Title 15, Commerce and Trade, and applicable to any case pending on or commenced on or after such date, and amendment by section 320(f)(2)(A)(ii) of div. N of Pub. L. 116–260, relating to repeal of such amendment if it became effective, effective two years after Dec. 27, 2020, see section 320(f) of Pub. L. 116–260, set out as a note under section 364 of this title. [Pursuant to 15 U.S.C. 636(a)(36)(A)(iii), the “covered period” for loans under the Paycheck Protection Program ended on June 30, 2021.]
|
||||
|
||||
Effective Date of 2005 AmendmentAmendment by Pub. L. 109–8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of this title.
|
||||
|
||||
Effective Date of 1994 AmendmentAmendment by Pub. L. 103–394 effective Oct. 22, 1994, and not applicable with respect to cases commenced under this title before Oct. 22, 1994, see section 702 of Pub. L. 103–394, set out as a note under section 101 of this title.
|
||||
|
||||
Effective Date of 1986 AmendmentAmendment by Pub. L. 99–554 effective 30 days after Oct. 27, 1986, see section 302(a) of Pub. L. 99–554, set out as a note under section 581 of Title 28, Judiciary and Judicial Procedure.
|
||||
|
||||
Effective Date of 1984 AmendmentAmendment by Pub. L. 98–353 effective with respect to cases filed 90 days after July 10, 1984, see section 552(a) of Pub. L. 98–353, set out as a note under section 101 of this title.
|
||||
@@ -0,0 +1,59 @@
|
||||
---
|
||||
type: "LegalText"
|
||||
title: "11 U.S.C. § 504"
|
||||
description: "Sharing of compensation"
|
||||
jurisdiction: "us"
|
||||
corpus: "united_states_code"
|
||||
kind: "code_section"
|
||||
title_number: 11
|
||||
title_name: "BANKRUPTCY"
|
||||
chapter_number: "5"
|
||||
chapter_name: "CREDITORS, THE DEBTOR, AND THE ESTATE"
|
||||
section: "504"
|
||||
citation: "11 U.S.C. § 504"
|
||||
status: "current"
|
||||
release_point: "119-100"
|
||||
release_date: "2026-06-26"
|
||||
source: "official"
|
||||
source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc11@119-100.zip"
|
||||
source_identifier: "/us/usc/t11/s504"
|
||||
source_file: "data/legal/raw/us/code/title-11/usc11.xml"
|
||||
source_hash: "a7f96aeae3ebde8a8b08ec65d74ea82ac47d736498ad41e38b5a4cc93b63af3f"
|
||||
raw_snapshot_hash: "49b32bf784de01de21874d64b5d1d78d1d245352824a03caa6d6b941a4a2c9a2"
|
||||
text_hash: "eefd74f5354ca175f42b22f424ee905ccaa8719212c33dbda3e2b68cc1f28780"
|
||||
retrieved_at: "2026-07-04"
|
||||
confidence: "official"
|
||||
tags: ["legal", "us-code"]
|
||||
---
|
||||
|
||||
# 11 U.S.C. § 504 - Sharing of compensation
|
||||
|
||||
## Text
|
||||
|
||||
(a) Except as provided in subsection (b) of this section, a person receiving compensation or reimbursement under section 503(b)(2) or 503(b)(4) of this title may not share or agree to share—
|
||||
|
||||
(1) any such compensation or reimbursement with another person; or
|
||||
|
||||
(2) any compensation or reimbursement received by another person under such sections.
|
||||
|
||||
(b) (1) A member, partner, or regular associate in a professional association, corporation, or partnership may share compensation or reimbursement received under section 503(b)(2) or 503(b)(4) of this title with another member, partner, or regular associate in such association, corporation, or partnership, and may share in any compensation or reimbursement received under such sections by another member, partner, or regular associate in such association, corporation, or partnership.
|
||||
|
||||
(2) An attorney for a creditor that files a petition under section 303 of this title may share compensation and reimbursement received under section 503(b)(4) of this title with any other attorney contributing to the services rendered or expenses incurred by such creditor’s attorney.
|
||||
|
||||
(c) This section shall not apply with respect to sharing, or agreeing to share, compensation with a bona fide public service attorney referral program that operates in accordance with non-Federal law regulating attorney referral services and with rules of professional responsibility applicable to attorney acceptance of referrals.
|
||||
|
||||
(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2582; Pub. L. 109–8, title III, § 326, Apr. 20, 2005, 119 Stat. 99.)
|
||||
|
||||
## Notes
|
||||
|
||||
Historical and Revision Notes
|
||||
|
||||
senate report no. 95–989Section 504 prohibits the sharing of compensation, or fee splitting, among attorneys, other professionals, or trustees. The section provides only two exceptions: partners or associates in the same professional association, partnership, or corporation may share compensation inter se; and attorneys for petitioning creditors that join in a petition commencing an involuntary case may share compensation.
|
||||
|
||||
Editorial Notes
|
||||
|
||||
Amendments2005—Subsec. (c). Pub. L. 109–8 added subsec. (c).
|
||||
|
||||
Statutory Notes and Related Subsidiaries
|
||||
|
||||
Effective Date of 2005 AmendmentAmendment by Pub. L. 109–8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of this title.
|
||||
File diff suppressed because one or more lines are too long
@@ -0,0 +1,67 @@
|
||||
---
|
||||
type: "LegalText"
|
||||
title: "11 U.S.C. § 506"
|
||||
description: "Determination of secured status"
|
||||
jurisdiction: "us"
|
||||
corpus: "united_states_code"
|
||||
kind: "code_section"
|
||||
title_number: 11
|
||||
title_name: "BANKRUPTCY"
|
||||
chapter_number: "5"
|
||||
chapter_name: "CREDITORS, THE DEBTOR, AND THE ESTATE"
|
||||
section: "506"
|
||||
citation: "11 U.S.C. § 506"
|
||||
status: "current"
|
||||
release_point: "119-100"
|
||||
release_date: "2026-06-26"
|
||||
source: "official"
|
||||
source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc11@119-100.zip"
|
||||
source_identifier: "/us/usc/t11/s506"
|
||||
source_file: "data/legal/raw/us/code/title-11/usc11.xml"
|
||||
source_hash: "fe588769bbfa425d1aeb7bcaa9183b8791ee65a5299e12598c424f5894c5bf00"
|
||||
raw_snapshot_hash: "49b32bf784de01de21874d64b5d1d78d1d245352824a03caa6d6b941a4a2c9a2"
|
||||
text_hash: "8a46451bffea03e980015ea53d83d58ef810490eceae8f09cc121a971ce7373c"
|
||||
retrieved_at: "2026-07-04"
|
||||
confidence: "official"
|
||||
tags: ["legal", "us-code"]
|
||||
---
|
||||
|
||||
# 11 U.S.C. § 506 - Determination of secured status
|
||||
|
||||
## Text
|
||||
|
||||
(a) (1) An allowed claim of a creditor secured by a lien on property in which the estate has an interest, or that is subject to setoff under section 553 of this title, is a secured claim to the extent of the value of such creditor’s interest in the estate’s interest in such property, or to the extent of the amount subject to setoff, as the case may be, and is an unsecured claim to the extent that the value of such creditor’s interest or the amount so subject to setoff is less than the amount of such allowed claim. Such value shall be determined in light of the purpose of the valuation and of the proposed disposition or use of such property, and in conjunction with any hearing on such disposition or use or on a plan affecting such creditor’s interest.
|
||||
|
||||
(2) If the debtor is an individual in a case under chapter 7 or 13, such value with respect to personal property securing an allowed claim shall be determined based on the replacement value of such property as of the date of the filing of the petition without deduction for costs of sale or marketing. With respect to property acquired for personal, family, or household purposes, replacement value shall mean the price a retail merchant would charge for property of that kind considering the age and condition of the property at the time value is determined.
|
||||
|
||||
(b) To the extent that an allowed secured claim is secured by property the value of which, after any recovery under subsection (c) of this section, is greater than the amount of such claim, there shall be allowed to the holder of such claim, interest on such claim, and any reasonable fees, costs, or charges provided for under the agreement or State statute under which such claim arose.
|
||||
|
||||
(c) The trustee may recover from property securing an allowed secured claim the reasonable, necessary costs and expenses of preserving, or disposing of, such property to the extent of any benefit to the holder of such claim, including the payment of all ad valorem property taxes with respect to the property.
|
||||
|
||||
(d) To the extent that a lien secures a claim against the debtor that is not an allowed secured claim, such lien is void, unless—
|
||||
|
||||
(1) such claim was disallowed only under section 502(b)(5) or 502(e) of this title; or
|
||||
|
||||
(2) such claim is not an allowed secured claim due only to the failure of any entity to file a proof of such claim under section 501 of this title.
|
||||
|
||||
(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2583; Pub. L. 98–353, title III, § 448, July 10, 1984, 98 Stat. 374; Pub. L. 109–8, title III, § 327, title VII, § 712(d), Apr. 20, 2005, 119 Stat. 99, 128.)
|
||||
|
||||
## Notes
|
||||
|
||||
Historical and Revision Notes
|
||||
|
||||
legislative statementsSection 506(a) of the House amendment adopts the provision contained in the Senate amendment and rejects a contrary provision as contained in H.R. 8200 as passed by the House. The provision contained in the Senate amendment and adopted by the House amendment recognizes that an amount subject to set-off is sufficient to recognize a secured status in the holder of such right. Additionally a determination of what portion of an allowed claim is secured and what portion is unsecured is binding only for the purpose for which the determination is made. Thus determinations for purposes of adequate protection is not binding for purposes of “cram down” on confirmation in a case under chapter 11. Section 506(b) of the House amendment adopts language contained in the Senate amendment and rejects language contained in H.R. 8200 as passed by the House. If the security agreement between the parties provides for attorneys’ fees, it will be enforceable under title 11, notwithstanding contrary law, and is recoverable from the collateral after any recovery under section 506(c). Section 506(c) of the House amendment was contained in H.R. 8200 as passed by the House and adopted, verbatim, in the Senate amendment. Any time the trustee or debtor in possession expends money to provide for the reasonable and necessary cost and expenses of preserving or disposing of a secured creditor’s collateral, the trustee or debtor in possession is entitled to recover such expenses from the secured party or from the property securing an allowed secured claim held by such party. Section 506(d) of the House amendment is derived from H.R. 8200 as passed by the House and is adopted in lieu of the alternative test provided in section 506(d) of the Senate amendment. For purposes of section 506(d) of the House amendment, the debtor is a party in interest. Determination of Secured Status: The House amendment deletes section 506(d)(3) of the Senate amendment, which insures that a tax lien securing a nondischargeable tax claim is not voided because a tax authority with notice or knowledge of the bankruptcy case fails to file a claim for the liability (as it may elect not to do, if it is clear there are insufficient assets to pay the liability). Since the House amendment retains section 506(d) of the House bill that a lien is not voided unless a party in interest has requested that the court determine and allow or disallow the claim, provision of the Senate amendment is not necessary.
|
||||
|
||||
senate report no. 95–989Subsection (a) of this section separates an undersecured creditor’s claim into two parts: He has a secured claim to the extent of the value of his collateral; and he has an unsecured claim for the balance of his claim. The subsection also provides for the valuation of claims which involve setoffs under section 553. While courts will have to determine value on a case-by-case basis, the subsection makes it clear that valuation is to be determined in light of the purpose of the valuation and the proposed disposition or use of the subject property. This determination shall be made in conjunction with any hearing on such disposition or use of property or on a plan affecting the creditor’s interest. To illustrate, a valuation early in the case in a proceeding under sections 361–363 would not be binding upon the debtor or creditor at the time of confirmation of the plan. Throughout the bill, references to secured claims are only to the claim determined to be secured under this subsection, and not to the full amount of the creditor’s claim. This provision abolishes the use of the terms “secured creditor” and “unsecured creditor” and substitutes in their places the terms “secured claim” and “unsecured claim.” Subsection (b) codifies current law by entitling a creditor with an oversecured claim to any reasonable fees (including attorney’s fees), costs, or charges provided under the agreement under which the claim arose. These fees, costs, and charges are secured claims to the extent that the value of the collateral exceeds the amount of the underlying claim. Subsection (c) also codifies current law by permitting the trustee to recover from property the value of which is greater than the sum of the claims secured by a lien on that property the reasonable, necessary costs and expenses of preserving, or disposing of, the property. The recovery is limited to the extent of any benefit to the holder of such claim. Subsection (d) provides that to the extent a secured claim is not allowed, its lien is void unless the holder had neither actual notice nor knowledge of the case, the lien was not listed by the debtor in a chapter 9 or 11 case or such claim was disallowed only under section 502(e).
|
||||
|
||||
house report no. 95–595Subsection (d) permits liens to pass through the bankruptcy case unaffected. However, if a party in interest requests the court to determine and allow or disallow the claim secured by the lien under section 502 and the claim is not allowed, then the lien is void to the extent that the claim is not allowed. The voiding provision does not apply to claims disallowed only under section 502(e), which requires disallowance of certain claims against the debtor by a codebtor, surety, or guarantor for contribution or reimbursement.
|
||||
|
||||
Editorial Notes
|
||||
|
||||
Amendments2005—Subsec. (a). Pub. L. 109–8, § 327, designated existing provisions as par. (1) and added par. (2). Subsec. (b). Pub. L. 109–8, § 712(d)(1), inserted “or State statute” after “agreement”. Subsec. (c). Pub. L. 109–8, § 712(d)(2), inserted “, including the payment of all ad valorem property taxes with respect to the property” before period at end. 1984—Subsec. (b). Pub. L. 98–353, § 448(a), inserted “for” after “provided”. Subsec. (d)(1). Pub. L. 98–353, § 448(b), substituted “such claim was disallowed only under section 502(b)(5) or 502(e) of this title” for “a party in interest has not requested that the court determine and allow or disallow such claim under section 502 of this title”. Subsec. (d)(2). Pub. L. 98–353, § 448(b), substituted “such claim is not an allowed secured claim due only to the failure of any entity to file a proof of such claim under section 501 of this title” for “such claim was disallowed only under section 502(e) of this title”.
|
||||
|
||||
Statutory Notes and Related Subsidiaries
|
||||
|
||||
Effective Date of 2005 AmendmentAmendment by Pub. L. 109–8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of this title.
|
||||
|
||||
Effective Date of 1984 AmendmentAmendment by Pub. L. 98–353 effective with respect to cases filed 90 days after July 10, 1984, see section 552(a) of Pub. L. 98–353, set out as a note under section 101 of this title.
|
||||
File diff suppressed because one or more lines are too long
@@ -0,0 +1,51 @@
|
||||
---
|
||||
type: "LegalText"
|
||||
title: "11 U.S.C. § 508"
|
||||
description: "Effect of distribution other than under this title"
|
||||
jurisdiction: "us"
|
||||
corpus: "united_states_code"
|
||||
kind: "code_section"
|
||||
title_number: 11
|
||||
title_name: "BANKRUPTCY"
|
||||
chapter_number: "5"
|
||||
chapter_name: "CREDITORS, THE DEBTOR, AND THE ESTATE"
|
||||
section: "508"
|
||||
citation: "11 U.S.C. § 508"
|
||||
status: "current"
|
||||
release_point: "119-100"
|
||||
release_date: "2026-06-26"
|
||||
source: "official"
|
||||
source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc11@119-100.zip"
|
||||
source_identifier: "/us/usc/t11/s508"
|
||||
source_file: "data/legal/raw/us/code/title-11/usc11.xml"
|
||||
source_hash: "a4f3df77ec59d4292237de475fedc9a908ffd1369a8a2d8a41e1e252b4c7943f"
|
||||
raw_snapshot_hash: "49b32bf784de01de21874d64b5d1d78d1d245352824a03caa6d6b941a4a2c9a2"
|
||||
text_hash: "f6482d95407da81d232a826cacf4bbe234a99770dd862844a2f6acf60eec10da"
|
||||
retrieved_at: "2026-07-04"
|
||||
confidence: "official"
|
||||
tags: ["legal", "us-code"]
|
||||
---
|
||||
|
||||
# 11 U.S.C. § 508 - Effect of distribution other than under this title
|
||||
|
||||
## Text
|
||||
|
||||
If a creditor of a partnership debtor receives, from a general partner that is not a debtor in a case under chapter 7 of this title, payment of, or a transfer of property on account of, a claim that is allowed under this title and that is not secured by a lien on property of such partner, such creditor may not receive any payment under this title on account of such claim until each of the other holders of claims on account of which such holders are entitled to share equally with such creditor under this title has received payment under this title equal in value to the consideration received by such creditor from such general partner.
|
||||
|
||||
(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2585; Pub. L. 109–8, title VIII, § 802(d)(7), Apr. 20, 2005, 119 Stat. 146.)
|
||||
|
||||
## Notes
|
||||
|
||||
Historical and Revision Notes
|
||||
|
||||
legislative statementsSection 508(b) of the House amendment is new and provides an identical rule with respect to a creditor of a partnership who receives payment from a partner, to that of a creditor of a debtor who receives a payment in a foreign proceeding involving the debtor.
|
||||
|
||||
senate report no. 95–989This section prohibits a creditor from receiving any distribution in the bankruptcy case if he has received payment of a portion of his claim in a foreign proceeding, until the other creditors in the bankruptcy case in this country that are entitled to share equally with that creditor have received as much as he has in the foreign proceeding.
|
||||
|
||||
Editorial Notes
|
||||
|
||||
Amendments2005—Pub. L. 109–8 designated subsec. (b) as entire section and struck out subsec. (a) which read as follows: “If a creditor receives, in a foreign proceeding, payment of, or a transfer of property on account of, a claim that is allowed under this title, such creditor may not receive any payment under this title on account of such claim until each of the other holders of claims on account of which such holders are entitled to share equally with such creditor under this title has received payment under this title equal in value to the consideration received by such creditor in such foreign proceeding.”
|
||||
|
||||
Statutory Notes and Related Subsidiaries
|
||||
|
||||
Effective Date of 2005 AmendmentAmendment by Pub. L. 109–8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of this title.
|
||||
@@ -0,0 +1,65 @@
|
||||
---
|
||||
type: "LegalText"
|
||||
title: "11 U.S.C. § 509"
|
||||
description: "Claims of codebtors"
|
||||
jurisdiction: "us"
|
||||
corpus: "united_states_code"
|
||||
kind: "code_section"
|
||||
title_number: 11
|
||||
title_name: "BANKRUPTCY"
|
||||
chapter_number: "5"
|
||||
chapter_name: "CREDITORS, THE DEBTOR, AND THE ESTATE"
|
||||
section: "509"
|
||||
citation: "11 U.S.C. § 509"
|
||||
status: "current"
|
||||
release_point: "119-100"
|
||||
release_date: "2026-06-26"
|
||||
source: "official"
|
||||
source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc11@119-100.zip"
|
||||
source_identifier: "/us/usc/t11/s509"
|
||||
source_file: "data/legal/raw/us/code/title-11/usc11.xml"
|
||||
source_hash: "6efbc3895a72b86f318fec2b35d17adf1b808f21c5a753f5c82fb8516c11c126"
|
||||
raw_snapshot_hash: "49b32bf784de01de21874d64b5d1d78d1d245352824a03caa6d6b941a4a2c9a2"
|
||||
text_hash: "b75e81f79b9b2342b36b96f84a54cbb7df052fc82eb2bc4373f7ea07ff0573a8"
|
||||
retrieved_at: "2026-07-04"
|
||||
confidence: "official"
|
||||
tags: ["legal", "us-code"]
|
||||
---
|
||||
|
||||
# 11 U.S.C. § 509 - Claims of codebtors
|
||||
|
||||
## Text
|
||||
|
||||
(a) Except as provided in subsection (b) or (c) of this section, an entity that is liable with the debtor on, or that has secured, a claim of a creditor against the debtor, and that pays such claim, is subrogated to the rights of such creditor to the extent of such payment.
|
||||
|
||||
(b) Such entity is not subrogated to the rights of such creditor to the extent that—
|
||||
|
||||
(1) a claim of such entity for reimbursement or contribution on account of such payment of such creditor’s claim is—
|
||||
|
||||
(A) allowed under section 502 of this title;
|
||||
|
||||
(B) disallowed other than under section 502(e) of this title; or
|
||||
|
||||
(C) subordinated under section 510 of this title; or
|
||||
|
||||
(2) as between the debtor and such entity, such entity received the consideration for the claim held by such creditor.
|
||||
|
||||
(c) The court shall subordinate to the claim of a creditor and for the benefit of such creditor an allowed claim, by way of subrogation under this section, or for reimbursement or contribution, of an entity that is liable with the debtor on, or that has secured, such creditor’s claim, until such creditor’s claim is paid in full, either through payments under this title or otherwise.
|
||||
|
||||
(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2585; Pub. L. 98–353, title III, § 450, July 10, 1984, 98 Stat. 375.)
|
||||
|
||||
## Notes
|
||||
|
||||
Historical and Revision Notes
|
||||
|
||||
legislative statementsSection 509 of the House amendment represents a substantial revision of provisions contained in H.R. 8200 as passed by the House and in the Senate amendment. Section 509(a) states a general rule that a surety or co-debtor is subrogated to the rights of a creditor assured by the surety or co-debtor to the extent the surety or co-debtor pays such creditor. Section 509(b) states a general exception indicating that subrogation is not granted to the extent that a claim of a surety or co-debtor for reimbursement or contribution is allowed under section 502 or disallowed other than under section 502(e). Additionally, section 509(b)(1)(C) provides that such claims for subrogation are subordinated to the extent that a claim of the surety or co-debtor for reimbursement or contribution is subordinated under section 510(a)(1) or 510(b). Section 509(b)(2) reiterates the well-known rule that prevents a debtor that is ultimately liable on the debt from recovering from a surety or a co-debtor. Although the language in section 509(b)(2) focuses in terms of receipt of consideration, legislative history appearing elsewhere indicates that an agreement to share liabilities should prevail over an agreement to share profits throughout title 11. This is particularly important in the context of co-debtors who are partners. Section 509(c) subordinates the claim of a surety or co-debtor to the claim of an assured creditor until the creditor’s claim is paid in full.
|
||||
|
||||
senate report no. 95–989Section 509 deals with codebtors generally, and is in addition to the disallowance provision in section 502(e). This section is based on the notion that the only rights available to a surety, guarantor, or comaker are contribution, reimbursement, and subrogation. The right that applies in a particular situation will depend on the agreement between the debtor and the codebtor, and on whether and how payment was made by the codebtor to the creditor. The claim of a surety or codebtor for contribution or reimbursement is discharged even if the claim is never filed, as is any claim for subrogation even if the surety or codebtor chooses to file a claim for contribution or reimbursement instead. Subsection (a) subrogates the codebtor (whether as a codebtor, surety, or guarantor) to the rights of the creditor, to the extent of any payment made by the codebtor to the creditor. Whether the creditor’s claim was filed under section 501(a) or 501(b) is irrelevant. The right of subrogation will exist even if the primary creditor’s claim is allowed by virtue of being listed under proposed 11 U.S.C. 924 or 1111, and not by reason of a proof of claim. Subsection (b) permits a subrogated codebtor to receive payments in the bankruptcy case only if the creditor has been paid in full, either through payments under the bankruptcy code or otherwise.
|
||||
|
||||
Editorial Notes
|
||||
|
||||
Amendments1984—Subsec. (a). Pub. L. 98–353, § 450(a), substituted “subsection (b) or” for “subsections (b) and”, and inserted “against the debtor” after “a creditor”. Subsec. (b)(1). Pub. L. 98–353, § 450(b), substituted “of such” for “of a” after “account”. Subsec. (c). Pub. L. 98–353, § 450(c), substituted “this section” for “section 509 of this title”.
|
||||
|
||||
Statutory Notes and Related Subsidiaries
|
||||
|
||||
Effective Date of 1984 AmendmentAmendment by Pub. L. 98–353 effective with respect to cases filed 90 days after July 10, 1984, see section 552(a) of Pub. L. 98–353, set out as a note under section 101 of this title.
|
||||
@@ -0,0 +1,59 @@
|
||||
---
|
||||
type: "LegalText"
|
||||
title: "11 U.S.C. § 510"
|
||||
description: "Subordination"
|
||||
jurisdiction: "us"
|
||||
corpus: "united_states_code"
|
||||
kind: "code_section"
|
||||
title_number: 11
|
||||
title_name: "BANKRUPTCY"
|
||||
chapter_number: "5"
|
||||
chapter_name: "CREDITORS, THE DEBTOR, AND THE ESTATE"
|
||||
section: "510"
|
||||
citation: "11 U.S.C. § 510"
|
||||
status: "current"
|
||||
release_point: "119-100"
|
||||
release_date: "2026-06-26"
|
||||
source: "official"
|
||||
source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc11@119-100.zip"
|
||||
source_identifier: "/us/usc/t11/s510"
|
||||
source_file: "data/legal/raw/us/code/title-11/usc11.xml"
|
||||
source_hash: "e1177d8a5bf8032a1e319ecb952dee2505148b5a3ca15b5a428976c62d25a3dd"
|
||||
raw_snapshot_hash: "49b32bf784de01de21874d64b5d1d78d1d245352824a03caa6d6b941a4a2c9a2"
|
||||
text_hash: "30c068480a248a42766f30b14746a70fd85c33306ab7b8f50361a1f2003306ba"
|
||||
retrieved_at: "2026-07-04"
|
||||
confidence: "official"
|
||||
tags: ["legal", "us-code"]
|
||||
---
|
||||
|
||||
# 11 U.S.C. § 510 - Subordination
|
||||
|
||||
## Text
|
||||
|
||||
(a) A subordination agreement is enforceable in a case under this title to the same extent that such agreement is enforceable under applicable nonbankruptcy law.
|
||||
|
||||
(b) For the purpose of distribution under this title, a claim arising from rescission of a purchase or sale of a security of the debtor or of an affiliate of the debtor, for damages arising from the purchase or sale of such a security, or for reimbursement or contribution allowed under section 502 on account of such a claim, shall be subordinated to all claims or interests that are senior to or equal the claim or interest represented by such security, except that if such security is common stock, such claim has the same priority as common stock.
|
||||
|
||||
(c) Notwithstanding subsections (a) and (b) of this section, after notice and a hearing, the court may—
|
||||
|
||||
(1) under principles of equitable subordination, subordinate for purposes of distribution all or part of an allowed claim to all or part of another allowed claim or all or part of an allowed interest to all or part of another allowed interest; or
|
||||
|
||||
(2) order that any lien securing such a subordinated claim be transferred to the estate.
|
||||
|
||||
(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2586; Pub. L. 98–353, title III, § 451, July 10, 1984, 98 Stat. 375.)
|
||||
|
||||
## Notes
|
||||
|
||||
Historical and Revision Notes
|
||||
|
||||
legislative statementsSection 510(c)(1) of the House amendment represents a compromise between similar provisions in the House bill and Senate amendment. After notice and a hearing, the court may, under principles of equitable subordination, subordinate for purposes of distribution all or part of an allowed claim to all or part of another allowed claim or all or part of an allowed interest to all or part of another allowed interest. As a matter of equity, it is reasonable that a court subordinate claims to claims and interests to interests. It is intended that the term “principles of equitable subordination” follow existing case law and leave to the courts development of this principle. To date, under existing law, a claim is generally subordinated only if holder of such claim is guilty of inequitable conduct, or the claim itself is of a status susceptible to subordination, such as a penalty or a claim for damages arising from the purchase or sale of a security of the debtor. The fact that such a claim may be secured is of no consequence to the issue of subordination. However, it is inconceivable that the status of a claim as a secured claim could ever be grounds for justifying equitable subordination. Subordination: Since the House amendment authorizes subordination of claims only under principles of equitable subordination, and thus incorporates principles of existing case law, a tax claim would rarely be subordinated under this provision of the bill. Section 511 of the Senate amendment is deleted. Its substance is adopted in section 502(b)(9) of the House amendment which reflects an identical provision contained in H.R. 8200 as passed by the House.
|
||||
|
||||
senate report no. 95–989Subsection (a) requires the court to enforce subordination agreements. A subordination agreement will not be enforced, however, in a reorganization case in which the class that is the beneficiary of the agreement has accepted, as specified in proposed 11 U.S.C. 1126, a plan that waives their rights under the agreement. Otherwise, the agreement would prevent just what chapter 11 contemplates: that seniors may give up rights to juniors in the interest of confirmation of a plan and rehabilitation of the debtor. The subsection also requires the court to subordinate in payment any claim for rescission of a purchase or sale of a security of the debtor or of an affiliate, or for damages arising from the purchase or sale of such a security, to all claims and interests that are senior to the claim or interest represented by the security. Thus, the later subordination varies with the claim or interest involved. If the security is a debt instrument, the damages or rescission claim will be granted the status of a general unsecured claim. If the security is an equity security, the damages or rescission claim is subordinated to all creditors and treated the same as the equity security itself. Subsection (b) authorizes the bankruptcy court, in ordering distribution of assets, to subordinate all or any part of any claim to all or any part of another claim, regardless of the priority ranking of either claim. In addition, any lien securing such a subordinated claim may be transferred to the estate. The bill provides, however, that any subordination ordered under this provision must be based on principles of equitable subordination. These principles are defined by case law, and have generally indicated that a claim may normally be subordinated only if its holder is guilty of misconduct. As originally introduced, the bill provided specifically that a tax claim may not be subordinated on equitable grounds. The bill deletes this express exception, but the effect under the amendment should be much the same in most situations since, under the judicial doctrine of equitable subordination, a tax claim would rarely be subordinated.
|
||||
|
||||
Editorial Notes
|
||||
|
||||
Amendments1984—Subsec. (b). Pub. L. 98–353 amended subsec. (b) generally. Prior to amendment, subsec. (b) read as follows: “Any claim for recission of a purchase or sale of a security of the debtor or of an affiliate or for damages arising from the purchase or sale of such a security shall be subordinated for purposes of distribution to all claims and interests that are senior or equal to the claim or interest represented by such security.”
|
||||
|
||||
Statutory Notes and Related Subsidiaries
|
||||
|
||||
Effective Date of 1984 AmendmentAmendment by Pub. L. 98–353 effective with respect to cases filed 90 days after July 10, 1984, see section 552(a) of Pub. L. 98–353, set out as a note under section 101 of this title.
|
||||
@@ -0,0 +1,43 @@
|
||||
---
|
||||
type: "LegalText"
|
||||
title: "11 U.S.C. § 511"
|
||||
description: "Rate of interest on tax claims"
|
||||
jurisdiction: "us"
|
||||
corpus: "united_states_code"
|
||||
kind: "code_section"
|
||||
title_number: 11
|
||||
title_name: "BANKRUPTCY"
|
||||
chapter_number: "5"
|
||||
chapter_name: "CREDITORS, THE DEBTOR, AND THE ESTATE"
|
||||
section: "511"
|
||||
citation: "11 U.S.C. § 511"
|
||||
status: "current"
|
||||
release_point: "119-100"
|
||||
release_date: "2026-06-26"
|
||||
source: "official"
|
||||
source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc11@119-100.zip"
|
||||
source_identifier: "/us/usc/t11/s511"
|
||||
source_file: "data/legal/raw/us/code/title-11/usc11.xml"
|
||||
source_hash: "3f3197fda04fa6a5e9587cfe3f38b0fdfc20e95966c36e7c96e470cd50948d87"
|
||||
raw_snapshot_hash: "49b32bf784de01de21874d64b5d1d78d1d245352824a03caa6d6b941a4a2c9a2"
|
||||
text_hash: "0abc175655cc4a6e2ee5018744195ceae1b43323bc73052ee5fb6fc023e05640"
|
||||
retrieved_at: "2026-07-04"
|
||||
confidence: "official"
|
||||
tags: ["legal", "us-code"]
|
||||
---
|
||||
|
||||
# 11 U.S.C. § 511 - Rate of interest on tax claims
|
||||
|
||||
## Text
|
||||
|
||||
(a) If any provision of this title requires the payment of interest on a tax claim or on an administrative expense tax, or the payment of interest to enable a creditor to receive the present value of the allowed amount of a tax claim, the rate of interest shall be the rate determined under applicable nonbankruptcy law.
|
||||
|
||||
(b) In the case of taxes paid under a confirmed plan under this title, the rate of interest shall be determined as of the calendar month in which the plan is confirmed.
|
||||
|
||||
(Added Pub. L. 109–8, title VII, § 704(a), Apr. 20, 2005, 119 Stat. 125.)
|
||||
|
||||
## Notes
|
||||
|
||||
Statutory Notes and Related Subsidiaries
|
||||
|
||||
Effective DateSection effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as an Effective Date of 2005 Amendment note under section 101 of this title.
|
||||
@@ -0,0 +1,183 @@
|
||||
---
|
||||
type: "LegalText"
|
||||
title: "11 U.S.C. § 521"
|
||||
description: "Debtor’s duties"
|
||||
jurisdiction: "us"
|
||||
corpus: "united_states_code"
|
||||
kind: "code_section"
|
||||
title_number: 11
|
||||
title_name: "BANKRUPTCY"
|
||||
chapter_number: "5"
|
||||
chapter_name: "CREDITORS, THE DEBTOR, AND THE ESTATE"
|
||||
section: "521"
|
||||
citation: "11 U.S.C. § 521"
|
||||
status: "current"
|
||||
release_point: "119-100"
|
||||
release_date: "2026-06-26"
|
||||
source: "official"
|
||||
source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc11@119-100.zip"
|
||||
source_identifier: "/us/usc/t11/s521"
|
||||
source_file: "data/legal/raw/us/code/title-11/usc11.xml"
|
||||
source_hash: "ad0c0228d6ed680721776933fca1ad4e21d48ea6464975c70745d17fb9c84b5e"
|
||||
raw_snapshot_hash: "49b32bf784de01de21874d64b5d1d78d1d245352824a03caa6d6b941a4a2c9a2"
|
||||
text_hash: "63a0cef1e375235de562e0f9a87889274c4254f09b0038572ecdc76bd77b4fa3"
|
||||
retrieved_at: "2026-07-04"
|
||||
confidence: "official"
|
||||
tags: ["legal", "us-code"]
|
||||
---
|
||||
|
||||
# 11 U.S.C. § 521 - Debtor’s duties
|
||||
|
||||
## Text
|
||||
|
||||
(a) The debtor shall—
|
||||
|
||||
(1) file—
|
||||
|
||||
(A) a list of creditors; and
|
||||
|
||||
(B) unless the court orders otherwise—
|
||||
|
||||
(i) a schedule of assets and liabilities;
|
||||
|
||||
(ii) a schedule of current income and current expenditures;
|
||||
|
||||
(iii) a statement of the debtor’s financial affairs and, if section 342(b) applies, a certificate—
|
||||
|
||||
(I) of an attorney whose name is indicated on the petition as the attorney for the debtor, or a bankruptcy petition preparer signing the petition under section 110(b)(1), indicating that such attorney or the bankruptcy petition preparer delivered to the debtor the notice required by section 342(b); or
|
||||
|
||||
(II) if no attorney is so indicated, and no bankruptcy petition preparer signed the petition, of the debtor that such notice was received and read by the debtor;
|
||||
|
||||
(iv) copies of all payment advices or other evidence of payment received within 60 days before the date of the filing of the petition, by the debtor from any employer of the debtor;
|
||||
|
||||
(v) a statement of the amount of monthly net income, itemized to show how the amount is calculated; and
|
||||
|
||||
(vi) a statement disclosing any reasonably anticipated increase in income or expenditures over the 12-month period following the date of the filing of the petition;
|
||||
|
||||
(2) if an individual debtor’s schedule of assets and liabilities includes debts which are secured by property of the estate—
|
||||
|
||||
(A) within thirty days after the date of the filing of a petition under chapter 7 of this title or on or before the date of the meeting of creditors, whichever is earlier, or within such additional time as the court, for cause, within such period fixes, file with the clerk a statement of his intention with respect to the retention or surrender of such property and, if applicable, specifying that such property is claimed as exempt, that the debtor intends to redeem such property, or that the debtor intends to reaffirm debts secured by such property; and
|
||||
|
||||
(B) within 30 days after the first date set for the meeting of creditors under section 341(a), or within such additional time as the court, for cause, within such 30-day period fixes, perform his intention with respect to such property, as specified by subparagraph (A) of this paragraph;
|
||||
|
||||
except that nothing in subparagraphs (A) and (B) of this paragraph shall alter the debtor’s or the trustee’s rights with regard to such property under this title, except as provided in section 362(h);
|
||||
|
||||
(3) if a trustee is serving in the case or an auditor is serving under section 586(f) of title 28, cooperate with the trustee as necessary to enable the trustee to perform the trustee’s duties under this title;
|
||||
|
||||
(4) if a trustee is serving in the case or an auditor is serving under section 586(f) of title 28, surrender to the trustee all property of the estate and any recorded information, including books, documents, records, and papers, relating to property of the estate, whether or not immunity is granted under section 344 of this title;
|
||||
|
||||
(5) appear at the hearing required under section 524(d) of this title;
|
||||
|
||||
(6) in a case under chapter 7 of this title in which the debtor is an individual, not retain possession of personal property as to which a creditor has an allowed claim for the purchase price secured in whole or in part by an interest in such personal property unless the debtor, not later than 45 days after the first meeting of creditors under section 341(a), either—
|
||||
|
||||
(A) enters into an agreement with the creditor pursuant to section 524(c) with respect to the claim secured by such property; or
|
||||
|
||||
(B) redeems such property from the security interest pursuant to section 722; and
|
||||
|
||||
(7) unless a trustee is serving in the case, continue to perform the obligations required of the administrator (as defined in section 3 of the Employee Retirement Income Security Act of 1974) of an employee benefit plan if at the time of the commencement of the case the debtor (or any entity designated by the debtor) served as such administrator.
|
||||
|
||||
If the debtor fails to so act within the 45-day period referred to in paragraph (6), the stay under section 362(a) is terminated with respect to the personal property of the estate or of the debtor which is affected, such property shall no longer be property of the estate, and the creditor may take whatever action as to such property as is permitted by applicable nonbankruptcy law, unless the court determines on the motion of the trustee filed before the expiration of such 45-day period, and after notice and a hearing, that such property is of consequential value or benefit to the estate, orders appropriate adequate protection of the creditor’s interest, and orders the debtor to deliver any collateral in the debtor’s possession to the trustee.
|
||||
|
||||
(b) In addition to the requirements under subsection (a), a debtor who is an individual shall file with the court—
|
||||
|
||||
(1) a certificate from the approved nonprofit budget and credit counseling agency that provided the debtor services under section 109(h) describing the services provided to the debtor; and
|
||||
|
||||
(2) a copy of the debt repayment plan, if any, developed under section 109(h) through the approved nonprofit budget and credit counseling agency referred to in paragraph (1).
|
||||
|
||||
(c) In addition to meeting the requirements under subsection (a), a debtor shall file with the court a record of any interest that a debtor has in an education individual retirement account (as defined in section 530(b)(1) of the Internal Revenue Code of 1986), an interest in an account in a qualified ABLE program (as defined in section 529A(b) of such Code,11 So in original. A closing parenthesis probably should precede the comma. or under a qualified State tuition program (as defined in section 529(b)(1) of such Code).
|
||||
|
||||
(d) If the debtor fails timely to take the action specified in subsection (a)(6) of this section, or in paragraphs (1) and (2) of section 362(h), with respect to property which a lessor or bailor owns and has leased, rented, or bailed to the debtor or as to which a creditor holds a security interest not otherwise voidable under section 522(f), 544, 545, 547, 548, or 549, nothing in this title shall prevent or limit the operation of a provision in the underlying lease or agreement that has the effect of placing the debtor in default under such lease or agreement by reason of the occurrence, pendency, or existence of a proceeding under this title or the insolvency of the debtor. Nothing in this subsection shall be deemed to justify limiting such a provision in any other circumstance.
|
||||
|
||||
(e) (1) If the debtor in a case under chapter 7 or 13 is an individual and if a creditor files with the court at any time a request to receive a copy of the petition, schedules, and statement of financial affairs filed by the debtor, then the court shall make such petition, such schedules, and such statement available to such creditor.
|
||||
|
||||
(2) (A) The debtor shall provide—
|
||||
|
||||
(i) not later than 7 days before the date first set for the first meeting of creditors, to the trustee a copy of the Federal income tax return required under applicable law (or at the election of the debtor, a transcript of such return) for the most recent tax year ending immediately before the commencement of the case and for which a Federal income tax return was filed; and
|
||||
|
||||
(ii) at the same time the debtor complies with clause (i), a copy of such return (or if elected under clause (i), such transcript) to any creditor that timely requests such copy.
|
||||
|
||||
(B) If the debtor fails to comply with clause (i) or (ii) of subparagraph (A), the court shall dismiss the case unless the debtor demonstrates that the failure to so comply is due to circumstances beyond the control of the debtor.
|
||||
|
||||
(C) If a creditor requests a copy of such tax return or such transcript and if the debtor fails to provide a copy of such tax return or such transcript to such creditor at the time the debtor provides such tax return or such transcript to the trustee, then the court shall dismiss the case unless the debtor demonstrates that the failure to provide a copy of such tax return or such transcript is due to circumstances beyond the control of the debtor.
|
||||
|
||||
(3) If a creditor in a case under chapter 13 files with the court at any time a request to receive a copy of the plan filed by the debtor, then the court shall make available to such creditor a copy of the plan—
|
||||
|
||||
(A) at a reasonable cost; and
|
||||
|
||||
(B) not later than 7 days after such request is filed.
|
||||
|
||||
(f) At the request of the court, the United States trustee, or any party in interest in a case under chapter 7, 11, or 13, a debtor who is an individual shall file with the court—
|
||||
|
||||
(1) at the same time filed with the taxing authority, a copy of each Federal income tax return required under applicable law (or at the election of the debtor, a transcript of such tax return) with respect to each tax year of the debtor ending while the case is pending under such chapter;
|
||||
|
||||
(2) at the same time filed with the taxing authority, each Federal income tax return required under applicable law (or at the election of the debtor, a transcript of such tax return) that had not been filed with such authority as of the date of the commencement of the case and that was subsequently filed for any tax year of the debtor ending in the 3-year period ending on the date of the commencement of the case;
|
||||
|
||||
(3) a copy of each amendment to any Federal income tax return or transcript filed with the court under paragraph (1) or (2); and
|
||||
|
||||
(4) in a case under chapter 13—
|
||||
|
||||
(A) on the date that is either 90 days after the end of such tax year or 1 year after the date of the commencement of the case, whichever is later, if a plan is not confirmed before such later date; and
|
||||
|
||||
(B) annually after the plan is confirmed and until the case is closed, not later than the date that is 45 days before the anniversary of the confirmation of the plan;
|
||||
|
||||
a statement, under penalty of perjury, of the income and expenditures of the debtor during the tax year of the debtor most recently concluded before such statement is filed under this paragraph, and of the monthly income of the debtor, that shows how income, expenditures, and monthly income are calculated.
|
||||
|
||||
(g) (1) A statement referred to in subsection (f)(4) shall disclose—
|
||||
|
||||
(A) the amount and sources of the income of the debtor;
|
||||
|
||||
(B) the identity of any person responsible with the debtor for the support of any dependent of the debtor; and
|
||||
|
||||
(C) the identity of any person who contributed, and the amount contributed, to the household in which the debtor resides.
|
||||
|
||||
(2) The tax returns, amendments, and statement of income and expenditures described in subsections (e)(2)(A) and (f) shall be available to the United States trustee (or the bankruptcy administrator, if any), the trustee, and any party in interest for inspection and copying, subject to the requirements of section 315(c) of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.
|
||||
|
||||
(h) If requested by the United States trustee or by the trustee, the debtor shall provide—
|
||||
|
||||
(1) a document that establishes the identity of the debtor, including a driver’s license, passport, or other document that contains a photograph of the debtor; or
|
||||
|
||||
(2) such other personal identifying information relating to the debtor that establishes the identity of the debtor.
|
||||
|
||||
(i) (1) Subject to paragraphs (2) and (4) and notwithstanding section 707(a), if an individual debtor in a voluntary case under chapter 7 or 13 fails to file all of the information required under subsection (a)(1) within 45 days after the date of the filing of the petition, the case shall be automatically dismissed effective on the 46th day after the date of the filing of the petition.
|
||||
|
||||
(2) Subject to paragraph (4) and with respect to a case described in paragraph (1), any party in interest may request the court to enter an order dismissing the case. If requested, the court shall enter an order of dismissal not later than 7 days after such request.
|
||||
|
||||
(3) Subject to paragraph (4) and upon request of the debtor made within 45 days after the date of the filing of the petition described in paragraph (1), the court may allow the debtor an additional period of not to exceed 45 days to file the information required under subsection (a)(1) if the court finds justification for extending the period for the filing.
|
||||
|
||||
(4) Notwithstanding any other provision of this subsection, on the motion of the trustee filed before the expiration of the applicable period of time specified in paragraph (1), (2), or (3), and after notice and a hearing, the court may decline to dismiss the case if the court finds that the debtor attempted in good faith to file all the information required by subsection (a)(1)(B)(iv) and that the best interests of creditors would be served by administration of the case.
|
||||
|
||||
(j) (1) Notwithstanding any other provision of this title, if the debtor fails to file a tax return that becomes due after the commencement of the case or to properly obtain an extension of the due date for filing such return, the taxing authority may request that the court enter an order converting or dismissing the case.
|
||||
|
||||
(2) If the debtor does not file the required return or obtain the extension referred to in paragraph (1) within 90 days after a request is filed by the taxing authority under that paragraph, the court shall convert or dismiss the case, whichever is in the best interests of creditors and the estate.
|
||||
|
||||
(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2586; Pub. L. 98–353, title III, §§ 305, 452, July 10, 1984, 98 Stat. 352, 375; Pub. L. 99–554, title II, § 283(h), Oct. 27, 1986, 100 Stat. 3117; Pub. L. 109–8, title I, § 106(d), title II, § 225(b), title III, §§ 304(1), 305(2), 315(b), 316, title IV, § 446(a), title VI, § 603(c), title VII, § 720, Apr. 20, 2005, 119 Stat. 38, 66, 78, 80, 89, 92, 118, 123, 133; Pub. L. 111–16, § 2(5), (6), May 7, 2009, 123 Stat. 1607; Pub. L. 111–327, § 2(a)(16), Dec. 22, 2010, 124 Stat. 3559; Pub. L. 113–295, div. B, title I, § 104(c), Dec. 19, 2014, 128 Stat. 4064.)
|
||||
|
||||
## Notes
|
||||
|
||||
Historical and Revision Notes
|
||||
|
||||
legislative statementsSection 521 of the House amendment modifies a comparable provision contained in the House bill and Senate amendment. The Rules of Bankruptcy Procedure should provide where the list of creditors is to be filed. In addition, the debtor is required to attend the hearing on discharge under section 524(d).
|
||||
|
||||
senate report no. 95–989This section lists three duties of the debtor in a bankruptcy case. The Rules of Bankruptcy Procedure will specify the means of carrying out these duties. The first duty is to file with the court a list of creditors and, unless the court orders otherwise, a schedule of assets and liabilities and a statement of his financial affairs. Second, the debtor is required to cooperate with the trustee as necessary to enable the trustee to perform the trustee’s duties. Finally, the debtor must surrender to the trustee all property of the estate, and any recorded information, including books, documents, records, and papers, relating to property of the estate. This phrase “recorded information, including books, documents, records, and papers,” has been used here and throughout the bill as a more general term, and includes such other forms of recorded information as data in computer storage or in other machine readable forms. The list in this section is not exhaustive of the debtor’s duties. Others are listed elsewhere in proposed title 11, such as in section 343, which requires the debtor to submit to examination, or in the Rules of Bankruptcy Procedure, as continued by § 404(a) of S. 2266, such as the duty to attend any hearing on discharge, Rule 402(2).
|
||||
|
||||
Editorial Notes
|
||||
|
||||
References in TextSection 3 of the Employee Retirement Income Security Act of 1974, referred to in subsec. (a)(7), is classified to section 1002 of Title 29, Labor. Sections 530(b)(1), 529A(b), and 529(b)(1) of the Internal Revenue Code of 1986, referred to in subsec. (c), are classified to sections 530(b)(1), 529A(b), and 529(b)(1), respectively, of Title 26, Internal Revenue Code. Section 315(c) of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, referred to in subsec. (g)(2), is section 315(c) of Pub. L. 109–8, which is set out as a note under this section.
|
||||
|
||||
Amendments2014—Subsec. (c). Pub. L. 113–295 inserted “, an interest in an account in a qualified ABLE program (as defined in section 529A(b) of such Code,” after “Internal Revenue Code of 1986)”. 2010—Subsec. (a)(2). Pub. L. 111–327, § 2(a)(16)(A)(iii), in subpar. (C) substituted “except that” for subpar. (C) designation. Subsec. (a)(2)(A). Pub. L. 111–327, § 2(a)(16)(A)(i), struck out “the debtor shall” after “period fixes,” and inserted “and” after semicolon at end. Subsec. (a)(2)(B). Pub. L. 111–327, § 2(a)(16)(A)(ii), struck out “the debtor shall” after “period fixes,” and “and” after semicolon at end. Subsec. (a)(3), (4). Pub. L. 111–327, § 2(a)(16)(B), inserted “is” after “auditor”. 2009—Subsec. (e)(3)(B). Pub. L. 111–16, § 2(5), substituted “7 days” for “5 days”. Subsec. (i)(2). Pub. L. 111–16, § 2(6), substituted “7 days” for “5 days”. 2005—Pub. L. 109–8, § 106(d)(1), designated existing provisions as subsec. (a). Subsec. (a). Pub. L. 109–8, § 304(1), added concluding provisions. Subsec. (a)(1). Pub. L. 109–8, § 315(b)(1), amended par. (1) generally. Prior to amendment, par. (1) read as follows: “file a list of creditors, and unless the court orders otherwise, a schedule of assets and liabilities, a schedule of current income and current expenditures, and a statement of the debtor’s financial affairs;”. Subsec. (a)(2). Pub. L. 109–8, § 305(2)(A), struck out “consumer” before “debts” in introductory provisions. Subsec. (a)(2)(B). Pub. L. 109–8, § 305(2)(B), substituted “30 days after the first date set for the meeting of creditors under section 341(a)” for “forty-five days after the filing of a notice of intent under this section” and “30-day” for “forty-five day”. Subsec. (a)(2)(C). Pub. L. 109–8, § 305(2)(C), inserted “, except as provided in section 362(h)” before semicolon. Subsec. (a)(3), (4). Pub. L. 109–8, § 603(c), inserted “or an auditor serving under section 586(f) of title 28” after “serving in the case”. Subsec. (a)(6). Pub. L. 109–8, § 304(1), added par. (6). Subsec. (a)(7). Pub. L. 109–8, § 446(a), added par. (7). Subsec. (b). Pub. L. 109–8, § 106(d)(2), added subsec. (b). Subsec. (c). Pub. L. 109–8, § 225(b), added subsec. (c). Subsec. (d). Pub. L. 109–8, § 305(2)(D), added subsec. (d). Subsecs. (e) to (h). Pub. L. 109–8, § 315(b)(2), added subsecs. (e) to (h). Subsec. (i). Pub. L. 109–8, § 316, added subsec. (i). Subsec. (j). Pub. L. 109–8, § 720, added subsec. (j). 1986—Par. (4). Pub. L. 99–554 inserted “, whether or not immunity is granted under section 344 of this title” after second reference to “estate”. 1984—Par. (1). Pub. L. 98–353, § 305(2), inserted “a schedule of current income and current expenditures,” after “liabilities,”. Pars. (2) to (5). Pub. L. 98–353, § 305(1), (3), added par. (2), redesignated former pars. (2) to (4) as (3) to (5), respectively. Pub. L. 98–353, § 452, which directed the insertion of “, whether or not immunity is granted under section 344 of this title” after second reference to “estate” in par. (3) as redesignated above, could not be executed because such reference appeared in par. (4) rather than in par. (3).
|
||||
|
||||
Statutory Notes and Related Subsidiaries
|
||||
|
||||
Effective Date of 2014 AmendmentPub. L. 113–295, div. B, title I, § 104(d), Dec. 19, 2014, 128 Stat. 4064, provided that: “The amendments made by this section [amending this section and sections 541 and 707 of this title] shall apply with respect to cases commenced under title 11, United States Code, on or after the date of the enactment of this Act [Dec. 19, 2014].”
|
||||
|
||||
Effective Date of 2009 AmendmentAmendment by Pub. L. 111–16 effective Dec. 1, 2009, see section 7 of Pub. L. 111–16, set out as a note under section 109 of this title.
|
||||
|
||||
Effective Date of 2005 AmendmentPub. L. 109–8, title VI, § 603(e), Apr. 20, 2005, 119 Stat. 123, provided that: “The amendments made by this section [amending this section, section 727 of this title and section 586 of Title 28, Judiciary and Judicial Procedure, and enacting provisions set out as a note under section 586 of Title 28] shall take effect 18 months after the date of enactment of this Act [Apr. 20, 2005].” Amendment by sections 106(d), 225(b), 304(1), 305(2), 315(b), 316, 446(a), and 720 of Pub. L. 109–8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of this title.
|
||||
|
||||
Effective Date of 1986 AmendmentAmendment by Pub. L. 99–554 effective 30 days after Oct. 27, 1986, see section 302(a) of Pub. L. 99–554, set out as a note under section 581 of Title 28, Judiciary and Judicial Procedure.
|
||||
|
||||
Effective Date of 1984 AmendmentAmendment by Pub. L. 98–353 effective with respect to cases filed 90 days after July 10, 1984, see section 552(a) of Pub. L. 98–353, set out as a note under section 101 of this title.
|
||||
|
||||
Confidentiality of Tax InformationPub. L. 109–8, title III, § 315(c), Apr. 20, 2005, 119 Stat. 91, provided that: “(1) Not later than 180 days after the date of the enactment of this Act [Apr. 20, 2005], the Director of the Administrative Office of the United States Courts shall establish procedures for safeguarding the confidentiality of any tax information required to be provided under this section. “(2) The procedures under paragraph (1) shall include restrictions on creditor access to tax information that is required to be provided under this section. “(3) Not later than 540 days after the date of enactment of this Act, the Director of the Administrative Office of the United States Courts shall prepare and submit to the President pro tempore of the Senate and the Speaker of the House of Representatives a report that—“(A) assesses the effectiveness of the procedures established under paragraph (1); and “(B) if appropriate, includes proposed legislation to—“(i) further protect the confidentiality of tax information; and “(ii) provide penalties for the improper use by any person of the tax information required to be provided under this section.”
|
||||
|
||||
Providing Requested Tax Documents to the CourtPub. L. 109–8, title XII, § 1228, Apr. 20, 2005, 119 Stat. 200, provided that: “(a) Chapter 7 Cases.—The court shall not grant a discharge in the case of an individual who is a debtor in a case under chapter 7 of title 11, United States Code, unless requested tax documents have been provided to the court. “(b) Chapter 11 and Chapter 13 Cases.—The court shall not confirm a plan of reorganization in the case of an individual under chapter 11 or 13 of title 11, United States Code, unless requested tax documents have been filed with the court. “(c) Document Retention.—The court shall destroy documents submitted in support of a bankruptcy claim not sooner than 3 years after the date of the conclusion of a case filed by an individual under chapter 7, 11, or 13 of title 11, United States Code. In the event of a pending audit or enforcement action, the court may extend the time for destruction of such requested tax documents.”
|
||||
File diff suppressed because one or more lines are too long
File diff suppressed because one or more lines are too long
File diff suppressed because one or more lines are too long
@@ -0,0 +1,69 @@
|
||||
---
|
||||
type: "LegalText"
|
||||
title: "11 U.S.C. § 525"
|
||||
description: "Protection against discriminatory treatment"
|
||||
jurisdiction: "us"
|
||||
corpus: "united_states_code"
|
||||
kind: "code_section"
|
||||
title_number: 11
|
||||
title_name: "BANKRUPTCY"
|
||||
chapter_number: "5"
|
||||
chapter_name: "CREDITORS, THE DEBTOR, AND THE ESTATE"
|
||||
section: "525"
|
||||
citation: "11 U.S.C. § 525"
|
||||
status: "current"
|
||||
release_point: "119-100"
|
||||
release_date: "2026-06-26"
|
||||
source: "official"
|
||||
source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc11@119-100.zip"
|
||||
source_identifier: "/us/usc/t11/s525"
|
||||
source_file: "data/legal/raw/us/code/title-11/usc11.xml"
|
||||
source_hash: "c56662eceebbdde8629e88181691a952b2f694085d851d1cf0fe037e9d46a865"
|
||||
raw_snapshot_hash: "49b32bf784de01de21874d64b5d1d78d1d245352824a03caa6d6b941a4a2c9a2"
|
||||
text_hash: "9c5d1ed5eaea0fafa98f10bd8cbf61566ba8ad51846221b3dcb6342942bad9c1"
|
||||
retrieved_at: "2026-07-04"
|
||||
confidence: "official"
|
||||
tags: ["legal", "us-code"]
|
||||
---
|
||||
|
||||
# 11 U.S.C. § 525 - Protection against discriminatory treatment
|
||||
|
||||
## Text
|
||||
|
||||
(a) Except as provided in the Perishable Agricultural Commodities Act, 1930, the Packers and Stockyards Act, 1921, and section 1 of the Act entitled “An Act making appropriations for the Department of Agriculture for the fiscal year ending June 30, 1944, and for other purposes,” approved July 12, 1943, a governmental unit may not deny, revoke, suspend, or refuse to renew a license, permit, charter, franchise, or other similar grant to, condition such a grant to, discriminate with respect to such a grant against, deny employment to, terminate the employment of, or discriminate with respect to employment against, a person that is or has been a debtor under this title or a bankrupt or a debtor under the Bankruptcy Act, or another person with whom such bankrupt or debtor has been associated, solely because such bankrupt or debtor is or has been a debtor under this title or a bankrupt or debtor under the Bankruptcy Act, has been insolvent before the commencement of the case under this title, or during the case but before the debtor is granted or denied a discharge, or has not paid a debt that is dischargeable in the case under this title or that was discharged under the Bankruptcy Act.
|
||||
|
||||
(b) No private employer may terminate the employment of, or discriminate with respect to employment against, an individual who is or has been a debtor under this title, a debtor or bankrupt under the Bankruptcy Act, or an individual associated with such debtor or bankrupt, solely because such debtor or bankrupt—
|
||||
|
||||
(1) is or has been a debtor under this title or a debtor or bankrupt under the Bankruptcy Act;
|
||||
|
||||
(2) has been insolvent before the commencement of a case under this title or during the case but before the grant or denial of a discharge; or
|
||||
|
||||
(3) has not paid a debt that is dischargeable in a case under this title or that was discharged under the Bankruptcy Act.
|
||||
|
||||
(c) (1) A governmental unit that operates a student grant or loan program and a person engaged in a business that includes the making of loans guaranteed or insured under a student loan program may not deny a student grant, loan, loan guarantee, or loan insurance to a person that is or has been a debtor under this title or a bankrupt or debtor under the Bankruptcy Act, or another person with whom the debtor or bankrupt has been associated, because the debtor or bankrupt is or has been a debtor under this title or a bankrupt or debtor under the Bankruptcy Act, has been insolvent before the commencement of a case under this title or during the pendency of the case but before the debtor is granted or denied a discharge, or has not paid a debt that is dischargeable in the case under this title or that was discharged under the Bankruptcy Act.
|
||||
|
||||
(2) In this section, “student loan program” means any program operated under title IV of the Higher Education Act of 1965 or a similar program operated under State or local law.
|
||||
|
||||
(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2593; Pub. L. 98–353, title III, § 309, July 10, 1984, 98 Stat. 354; Pub. L. 103–394, title III, § 313, title V, § 501(d)(15), Oct. 22, 1994, 108 Stat. 4140, 4145; Pub. L. 109–8, title XII, § 1211, Apr. 20, 2005, 119 Stat. 194; Pub. L. 116–260, div. FF, title X, § 1001(c), Dec. 27, 2020, 134 Stat. 3217.)
|
||||
|
||||
## Notes
|
||||
|
||||
Historical and Revision Notes
|
||||
|
||||
senate report no. 95–989This section is additional debtor protection. It codifies the result of Perez v. Campbell, 402 U.S. 637 (1971), which held that a State would frustrate the Congressional policy of a fresh start for a debtor if it were permitted to refuse to renew a drivers license because a tort judgment resulting from an automobile accident had been unpaid as a result of a discharge in bankruptcy. Notwithstanding any other laws, section 525 prohibits a governmental unit from denying, revoking, suspending, or refusing to renew a license, permit, charter, franchise, or other similar grant to, from conditioning such a grant to, from discrimination with respect to such a grant against, deny employment to, terminate the employment of, or discriminate with respect to employment against, a person that is or has been a debtor or that is or has been associated with a debtor. The prohibition extends only to discrimination or other action based solely on the basis of the bankruptcy, on the basis of insolvency before or during bankruptcy prior to a determination of discharge, or on the basis of nonpayment of a debt discharged in the bankruptcy case (the Perez situation). It does not prohibit consideration of other factors, such as future financial responsibility or ability, and does not prohibit imposition of requirements such as net capital rules, if applied nondiscriminatorily. In addition, the section is not exhaustive. The enumeration of various forms of discrimination against former bankrupts is not intended to permit other forms of discrimination. The courts have been developing the Perez rule. This section permits further development to prohibit actions by governmental or quasi-governmental organizations that perform licensing functions, such as a State bar association or a medical society, or by other organizations that can seriously affect the debtors’ livelihood or fresh start, such as exclusion from a union on the basis of discharge of a debt to the union’s credit union. The effect of the section, and of further interpretations of the Perez rule, is to strengthen the anti-reaffirmation policy found in section 524(b). Discrimination based solely on nonpayment could encourage reaffirmations, contrary to the expressed policy. The section is not so broad as a comparable section proposed by the Bankruptcy Commission, S. 236, 94th Cong., 1st Sess. § 4–508 (1975), which would have extended the prohibition to any discrimination, even by private parties. Nevertheless, it is not limiting either, as noted. The courts will continue to mark the contours of the anti-discrimination provision in pursuit of sound bankruptcy policy.
|
||||
|
||||
Editorial Notes
|
||||
|
||||
References in TextThe Perishable Agricultural Commodities Act, 1930, referred to in subsec. (a), is act June 10, 1930, ch. 436, 46 Stat. 531, which is classified generally to chapter 20A (§ 499a et seq.) of Title 7, Agriculture. For complete classification of this Act to the Code, see section 499a(a) of Title 7 and Tables. The Packers and Stockyards Act, 1921, referred to in subsec. (a), is act Aug. 15, 1921, ch. 64, 42 Stat. 159, which is classified generally to chapter 9 (§ 181 et seq.) of Title 7. For complete classification of this Act to the Code, see section 181 of Title 7 and Tables. Section 1 of the Act entitled “An Act making appropriations for the Department of Agriculture for the fiscal year ending June 30, 1944, and for other purposes,” approved July 12, 1943, referred to in subsec. (a), is classified to section 204 of Title 7. The Bankruptcy Act, referred to in text, is act July 1, 1898, ch. 541, 30 Stat. 544, which was classified generally to former Title 11. The Higher Education Act of 1965, referred to in subsec. (c)(2), is Pub. L. 89–329, Nov. 8, 1965, 79 Stat. 1219. Title IV of the Act is classified generally to subchapter IV (§ 1070 et seq.) of chapter 28 of Title 20, Education. For complete classification of this Act to the Code, see Short Title note set out under section 1001 of Title 20 and Tables.
|
||||
|
||||
Amendments2020—Subsec. (d). Pub. L. 116–260, § 1001(c)(2), struck out subsec. (d) which read as follows: “A person may not be denied relief under sections 4022 through 4024 of the CARES Act (15 U.S.C. 9056, 9057, 9058) because the person is or has been a debtor under this title.” Pub. L. 116–260, § 1001(c)(1), added subsec. (d). 2005—Subsec. (c)(1). Pub. L. 109–8, § 1211(1), inserted “student” before “grant, loan,”. Subsec. (c)(2). Pub. L. 109–8, § 1211(2), substituted “any program operated under” for “the program operated under part B, D, or E of”. 1994—Subsec. (a). Pub. L. 103–394, § 501(d)(15), struck out “(7 U.S.C. 499a–499s)” after “Act, 1930”, “(7 U.S.C. 181–229)” after “Act, 1921”, and “(57 Stat. 422; 7 U.S.C. 204)” after “July 12, 1943”. Subsec. (c). Pub. L. 103–394, § 313, added subsec. (c). 1984—Pub. L. 98–353 designated existing provisions as subsec. (a), inserted “the” before “Perishable”, and added subsec. (b).
|
||||
|
||||
Statutory Notes and Related Subsidiaries
|
||||
|
||||
Effective Date of 2020 AmendmentPub. L. 116–260, div. FF, title X, § 1001(c)(2), Dec. 27, 2020, 134 Stat. 3217, provided that the amendment made by section 1001(c)(2) is effective on the date that is 1 year after Dec. 27, 2020.
|
||||
|
||||
Effective Date of 2005 AmendmentAmendment by Pub. L. 109–8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of this title.
|
||||
|
||||
Effective Date of 1994 AmendmentAmendment by Pub. L. 103–394 effective Oct. 22, 1994, and not applicable with respect to cases commenced under this title before Oct. 22, 1994, see section 702 of Pub. L. 103–394, set out as a note under section 101 of this title.
|
||||
|
||||
Effective Date of 1984 AmendmentAmendment by Pub. L. 98–353 effective with respect to cases filed 90 days after July 10, 1984, see section 552(a) of Pub. L. 98–353, set out as a note under section 101 of this title.
|
||||
@@ -0,0 +1,97 @@
|
||||
---
|
||||
type: "LegalText"
|
||||
title: "11 U.S.C. § 526"
|
||||
description: "Restrictions on debt relief agencies"
|
||||
jurisdiction: "us"
|
||||
corpus: "united_states_code"
|
||||
kind: "code_section"
|
||||
title_number: 11
|
||||
title_name: "BANKRUPTCY"
|
||||
chapter_number: "5"
|
||||
chapter_name: "CREDITORS, THE DEBTOR, AND THE ESTATE"
|
||||
section: "526"
|
||||
citation: "11 U.S.C. § 526"
|
||||
status: "current"
|
||||
release_point: "119-100"
|
||||
release_date: "2026-06-26"
|
||||
source: "official"
|
||||
source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc11@119-100.zip"
|
||||
source_identifier: "/us/usc/t11/s526"
|
||||
source_file: "data/legal/raw/us/code/title-11/usc11.xml"
|
||||
source_hash: "899c16a97bcbe9cbd6cb4d4eaaea3b0313385ce54e5a590c0eba56a291e04594"
|
||||
raw_snapshot_hash: "49b32bf784de01de21874d64b5d1d78d1d245352824a03caa6d6b941a4a2c9a2"
|
||||
text_hash: "17be6a459cd7d4d7ef2448ed8aebd611b869f48a98556811b2c70d3a93898df2"
|
||||
retrieved_at: "2026-07-04"
|
||||
confidence: "official"
|
||||
tags: ["legal", "us-code"]
|
||||
---
|
||||
|
||||
# 11 U.S.C. § 526 - Restrictions on debt relief agencies
|
||||
|
||||
## Text
|
||||
|
||||
(a) A debt relief agency shall not—
|
||||
|
||||
(1) fail to perform any service that such agency informed an assisted person or prospective assisted person it would provide in connection with a case or proceeding under this title;
|
||||
|
||||
(2) make any statement, or counsel or advise any assisted person or prospective assisted person to make a statement in a document filed in a case or proceeding under this title, that is untrue or misleading, or that upon the exercise of reasonable care, should have been known by such agency to be untrue or misleading;
|
||||
|
||||
(3) misrepresent to any assisted person or prospective assisted person, directly or indirectly, affirmatively or by material omission, with respect to—
|
||||
|
||||
(A) the services that such agency will provide to such person; or
|
||||
|
||||
(B) the benefits and risks that may result if such person becomes a debtor in a case under this title; or
|
||||
|
||||
(4) advise an assisted person or prospective assisted person to incur more debt in contemplation of such person filing a case under this title or to pay an attorney or bankruptcy petition preparer a fee or charge for services performed as part of preparing for or representing a debtor in a case under this title.
|
||||
|
||||
(b) Any waiver by any assisted person of any protection or right provided under this section shall not be enforceable against the debtor by any Federal or State court or any other person, but may be enforced against a debt relief agency.
|
||||
|
||||
(c) (1) Any contract for bankruptcy assistance between a debt relief agency and an assisted person that does not comply with the material requirements of this section, section 527, or section 528 shall be void and may not be enforced by any Federal or State court or by any other person, other than such assisted person.
|
||||
|
||||
(2) Any debt relief agency shall be liable to an assisted person in the amount of any fees or charges in connection with providing bankruptcy assistance to such person that such debt relief agency has received, for actual damages, and for reasonable attorneys’ fees and costs if such agency is found, after notice and a hearing, to have—
|
||||
|
||||
(A) intentionally or negligently failed to comply with any provision of this section, section 527, or section 528 with respect to a case or proceeding under this title for such assisted person;
|
||||
|
||||
(B) provided bankruptcy assistance to an assisted person in a case or proceeding under this title that is dismissed or converted to a case under another chapter of this title because of such agency’s intentional or negligent failure to file any required document including those specified in section 521; or
|
||||
|
||||
(C) intentionally or negligently disregarded the material requirements of this title or the Federal Rules of Bankruptcy Procedure applicable to such agency.
|
||||
|
||||
(3) In addition to such other remedies as are provided under State law, whenever the chief law enforcement officer of a State, or an official or agency designated by a State, has reason to believe that any person has violated or is violating this section, the State—
|
||||
|
||||
(A) may bring an action to enjoin such violation;
|
||||
|
||||
(B) may bring an action on behalf of its residents to recover the actual damages of assisted persons arising from such violation, including any liability under paragraph (2); and
|
||||
|
||||
(C) in the case of any successful action under subparagraph (A) or (B), shall be awarded the costs of the action and reasonable attorneys’ fees as determined by the court.
|
||||
|
||||
(4) The district courts of the United States for districts located in the State shall have concurrent jurisdiction of any action under subparagraph (A) or (B) of paragraph (3).
|
||||
|
||||
(5) Notwithstanding any other provision of Federal law and in addition to any other remedy provided under Federal or State law, if the court, on its own motion or on the motion of the United States trustee or the debtor, finds that a person intentionally violated this section, or engaged in a clear and consistent pattern or practice of violating this section, the court may—
|
||||
|
||||
(A) enjoin the violation of such section; or
|
||||
|
||||
(B) impose an appropriate civil penalty against such person.
|
||||
|
||||
(d) No provision of this section, section 527, or section 528 shall—
|
||||
|
||||
(1) annul, alter, affect, or exempt any person subject to such sections from complying with any law of any State except to the extent that such law is inconsistent with those sections, and then only to the extent of the inconsistency; or
|
||||
|
||||
(2) be deemed to limit or curtail the authority or ability—
|
||||
|
||||
(A) of a State or subdivision or instrumentality thereof, to determine and enforce qualifications for the practice of law under the laws of that State; or
|
||||
|
||||
(B) of a Federal court to determine and enforce the qualifications for the practice of law before that court.
|
||||
|
||||
(Added Pub. L. 109–8, title II, § 227(a), Apr. 20, 2005, 119 Stat. 67; amended Pub. L. 111–327, § 2(a)(20), Dec. 22, 2010, 124 Stat. 3560.)
|
||||
|
||||
## Notes
|
||||
|
||||
Editorial Notes
|
||||
|
||||
References in TextThe Federal Rules of Bankruptcy Procedure, referred to in subsec. (c)(2)(C), are set out in the Appendix to this title.
|
||||
|
||||
Amendments2010—Subsec. (a)(2). Pub. L. 111–327, § 2(a)(20)(A), substituted “that is untrue or” for “that is untrue and”. Subsec. (a)(4). Pub. L. 111–327, § 2(a)(20)(B), inserted “a” after “preparer”.
|
||||
|
||||
Statutory Notes and Related Subsidiaries
|
||||
|
||||
Effective DateSection effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as an Effective Date of 2005 Amendment note under section 101 of this title.
|
||||
@@ -0,0 +1,69 @@
|
||||
---
|
||||
type: "LegalText"
|
||||
title: "11 U.S.C. § 527"
|
||||
description: "Disclosures"
|
||||
jurisdiction: "us"
|
||||
corpus: "united_states_code"
|
||||
kind: "code_section"
|
||||
title_number: 11
|
||||
title_name: "BANKRUPTCY"
|
||||
chapter_number: "5"
|
||||
chapter_name: "CREDITORS, THE DEBTOR, AND THE ESTATE"
|
||||
section: "527"
|
||||
citation: "11 U.S.C. § 527"
|
||||
status: "current"
|
||||
release_point: "119-100"
|
||||
release_date: "2026-06-26"
|
||||
source: "official"
|
||||
source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc11@119-100.zip"
|
||||
source_identifier: "/us/usc/t11/s527"
|
||||
source_file: "data/legal/raw/us/code/title-11/usc11.xml"
|
||||
source_hash: "db9ecfb812475b583e955d27320f646cb061a3b1f0566f8cb8767dae8f7a9b09"
|
||||
raw_snapshot_hash: "49b32bf784de01de21874d64b5d1d78d1d245352824a03caa6d6b941a4a2c9a2"
|
||||
text_hash: "a1283814cda4a8f5a595bf2ae75a52a0c0fd2f75560cb9137da3b27b543466c2"
|
||||
retrieved_at: "2026-07-04"
|
||||
confidence: "official"
|
||||
tags: ["legal", "us-code"]
|
||||
---
|
||||
|
||||
# 11 U.S.C. § 527 - Disclosures
|
||||
|
||||
## Text
|
||||
|
||||
(a) A debt relief agency providing bankruptcy assistance to an assisted person shall provide—
|
||||
|
||||
(1) the written notice required under section 342(b)(1); and
|
||||
|
||||
(2) to the extent not covered in the written notice described in paragraph (1), and not later than 3 business days after the first date on which a debt relief agency first offers to provide any bankruptcy assistance services to an assisted person, a clear and conspicuous written notice advising assisted persons that—
|
||||
|
||||
(A) all information that the assisted person is required to provide with a petition and thereafter during a case under this title is required to be complete, accurate, and truthful;
|
||||
|
||||
(B) all assets and all liabilities are required to be completely and accurately disclosed in the documents filed to commence the case, and the replacement value of each asset as defined in section 506 must be stated in those documents where requested after reasonable inquiry to establish such value;
|
||||
|
||||
(C) current monthly income, the amounts specified in section 707(b)(2), and, in a case under chapter 13 of this title, disposable income (determined in accordance with section 707(b)(2)), are required to be stated after reasonable inquiry; and
|
||||
|
||||
(D) information that an assisted person provides during their case may be audited pursuant to this title, and that failure to provide such information may result in dismissal of the case under this title or other sanction, including a criminal sanction.
|
||||
|
||||
(b) A debt relief agency providing bankruptcy assistance to an assisted person shall provide each assisted person at the same time as the notices required under subsection (a)(1) the following statement, to the extent applicable, or one substantially similar. The statement shall be clear and conspicuous and shall be in a single document separate from other documents or notices provided to the assisted person:“IMPORTANT INFORMATION ABOUT BANKRUPTCY ASSISTANCE SERVICES FROM AN ATTORNEY OR BANKRUPTCY PETITION PREPARER. “If you decide to seek bankruptcy relief, you can represent yourself, you can hire an attorney to represent you, or you can get help in some localities from a bankruptcy petition preparer who is not an attorney. THE LAW REQUIRES AN ATTORNEY OR BANKRUPTCY PETITION PREPARER TO GIVE YOU A WRITTEN CONTRACT SPECIFYING WHAT THE ATTORNEY OR BANKRUPTCY PETITION PREPARER WILL DO FOR YOU AND HOW MUCH IT WILL COST. Ask to see the contract before you hire anyone. “The following information helps you understand what must be done in a routine bankruptcy case to help you evaluate how much service you need. Although bankruptcy can be complex, many cases are routine. “Before filing a bankruptcy case, either you or your attorney should analyze your eligibility for different forms of debt relief available under the Bankruptcy Code and which form of relief is most likely to be beneficial for you. Be sure you understand the relief you can obtain and its limitations. To file a bankruptcy case, documents called a Petition, Schedules, and Statement of Financial Affairs, and in some cases a Statement of Intention, need to be prepared correctly and filed with the bankruptcy court. You will have to pay a filing fee to the bankruptcy court. Once your case starts, you will have to attend the required first meeting of creditors where you may be questioned by a court official called a ‘trustee’ and by creditors. “If you choose to file a chapter 7 case, you may be asked by a creditor to reaffirm a debt. You may want help deciding whether to do so. A creditor is not permitted to coerce you into reaffirming your debts. “If you choose to file a chapter 13 case in which you repay your creditors what you can afford over 3 to 5 years, you may also want help with preparing your chapter 13 plan and with the confirmation hearing on your plan which will be before a bankruptcy judge. “If you select another type of relief under the Bankruptcy Code other than chapter 7 or chapter 13, you will want to find out what should be done from someone familiar with that type of relief. “Your bankruptcy case may also involve litigation. You are generally permitted to represent yourself in litigation in bankruptcy court, but only attorneys, not bankruptcy petition preparers, can give you legal advice.”.
|
||||
|
||||
(c) Except to the extent the debt relief agency provides the required information itself after reasonably diligent inquiry of the assisted person or others so as to obtain such information reasonably accurately for inclusion on the petition, schedules or statement of financial affairs, a debt relief agency providing bankruptcy assistance to an assisted person, to the extent permitted by nonbankruptcy law, shall provide each assisted person at the time required for the notice required under subsection (a)(1) reasonably sufficient information (which shall be provided in a clear and conspicuous writing) to the assisted person on how to provide all the information the assisted person is required to provide under this title pursuant to section 521, including—
|
||||
|
||||
(1) how to value assets at replacement value, determine current monthly income, the amounts specified in section 707(b)(2) and, in a chapter 13 case, how to determine disposable income in accordance with section 707(b)(2) and related calculations;
|
||||
|
||||
(2) how to complete the list of creditors, including how to determine what amount is owed and what address for the creditor should be shown; and
|
||||
|
||||
(3) how to determine what property is exempt and how to value exempt property at replacement value as defined in section 506.
|
||||
|
||||
(d) A debt relief agency shall maintain a copy of the notices required under subsection (a) of this section for 2 years after the date on which the notice is given the assisted person.
|
||||
|
||||
(Added Pub. L. 109–8, title II, § 228(a), Apr. 20, 2005, 119 Stat. 69; amended Pub. L. 111–327, § 2(a)(21), Dec. 22, 2010, 124 Stat. 3560.)
|
||||
|
||||
## Notes
|
||||
|
||||
Editorial Notes
|
||||
|
||||
Amendments2010—Subsec. (b). Pub. L. 111–327 substituted “Schedules, and Statement of Financial Affairs, and in some cases a Statement of Intention,” for “Schedules and Statement of Financial Affairs, as well as in some cases a Statement of Intention” in third sentence of fourth undesignated par.
|
||||
|
||||
Statutory Notes and Related Subsidiaries
|
||||
|
||||
Effective DateSection effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as an Effective Date of 2005 Amendment note under section 101 of this title.
|
||||
@@ -0,0 +1,65 @@
|
||||
---
|
||||
type: "LegalText"
|
||||
title: "11 U.S.C. § 528"
|
||||
description: "Requirements for debt relief agencies"
|
||||
jurisdiction: "us"
|
||||
corpus: "united_states_code"
|
||||
kind: "code_section"
|
||||
title_number: 11
|
||||
title_name: "BANKRUPTCY"
|
||||
chapter_number: "5"
|
||||
chapter_name: "CREDITORS, THE DEBTOR, AND THE ESTATE"
|
||||
section: "528"
|
||||
citation: "11 U.S.C. § 528"
|
||||
status: "current"
|
||||
release_point: "119-100"
|
||||
release_date: "2026-06-26"
|
||||
source: "official"
|
||||
source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc11@119-100.zip"
|
||||
source_identifier: "/us/usc/t11/s528"
|
||||
source_file: "data/legal/raw/us/code/title-11/usc11.xml"
|
||||
source_hash: "760c54a7df1abf76f8662e9b9da4b77844109567fae6cefcbd7ac9d0a065b45d"
|
||||
raw_snapshot_hash: "49b32bf784de01de21874d64b5d1d78d1d245352824a03caa6d6b941a4a2c9a2"
|
||||
text_hash: "7998831e87371ad8c74f72469a81a82b0009753a07b0b31d1790ef2139a9af10"
|
||||
retrieved_at: "2026-07-04"
|
||||
confidence: "official"
|
||||
tags: ["legal", "us-code"]
|
||||
---
|
||||
|
||||
# 11 U.S.C. § 528 - Requirements for debt relief agencies
|
||||
|
||||
## Text
|
||||
|
||||
(a) A debt relief agency shall—
|
||||
|
||||
(1) not later than 5 business days after the first date on which such agency provides any bankruptcy assistance services to an assisted person, but prior to such assisted person’s petition under this title being filed, execute a written contract with such assisted person that explains clearly and conspicuously—
|
||||
|
||||
(A) the services such agency will provide to such assisted person; and
|
||||
|
||||
(B) the fees or charges for such services, and the terms of payment;
|
||||
|
||||
(2) provide the assisted person with a copy of the fully executed and completed contract;
|
||||
|
||||
(3) clearly and conspicuously disclose in any advertisement of bankruptcy assistance services or of the benefits of bankruptcy directed to the general public (whether in general media, seminars or specific mailings, telephonic or electronic messages, or otherwise) that the services or benefits are with respect to bankruptcy relief under this title; and
|
||||
|
||||
(4) clearly and conspicuously use the following statement in such advertisement: “We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.” or a substantially similar statement.
|
||||
|
||||
(b) (1) An advertisement of bankruptcy assistance services or of the benefits of bankruptcy directed to the general public includes—
|
||||
|
||||
(A) descriptions of bankruptcy assistance in connection with a chapter 13 plan whether or not chapter 13 is specifically mentioned in such advertisement; and
|
||||
|
||||
(B) statements such as “federally supervised repayment plan” or “Federal debt restructuring help” or other similar statements that could lead a reasonable consumer to believe that debt counseling was being offered when in fact the services were directed to providing bankruptcy assistance with a chapter 13 plan or other form of bankruptcy relief under this title.
|
||||
|
||||
(2) An advertisement, directed to the general public, indicating that the debt relief agency provides assistance with respect to credit defaults, mortgage foreclosures, eviction proceedings, excessive debt, debt collection pressure, or inability to pay any consumer debt shall—
|
||||
|
||||
(A) disclose clearly and conspicuously in such advertisement that the assistance may involve bankruptcy relief under this title; and
|
||||
|
||||
(B) include the following statement: “We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.” or a substantially similar statement.
|
||||
|
||||
(Added Pub. L. 109–8, title II, § 229(a), Apr. 20, 2005, 119 Stat. 71.)
|
||||
|
||||
## Notes
|
||||
|
||||
Statutory Notes and Related Subsidiaries
|
||||
|
||||
Effective DateSection effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as an Effective Date of 2005 Amendment note under section 101 of this title.
|
||||
File diff suppressed because one or more lines are too long
@@ -0,0 +1,61 @@
|
||||
---
|
||||
type: "LegalText"
|
||||
title: "11 U.S.C. § 542"
|
||||
description: "Turnover of property to the estate"
|
||||
jurisdiction: "us"
|
||||
corpus: "united_states_code"
|
||||
kind: "code_section"
|
||||
title_number: 11
|
||||
title_name: "BANKRUPTCY"
|
||||
chapter_number: "5"
|
||||
chapter_name: "CREDITORS, THE DEBTOR, AND THE ESTATE"
|
||||
section: "542"
|
||||
citation: "11 U.S.C. § 542"
|
||||
status: "current"
|
||||
release_point: "119-100"
|
||||
release_date: "2026-06-26"
|
||||
source: "official"
|
||||
source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc11@119-100.zip"
|
||||
source_identifier: "/us/usc/t11/s542"
|
||||
source_file: "data/legal/raw/us/code/title-11/usc11.xml"
|
||||
source_hash: "c71da56ebf300e685167446a542a96eb34f06cad0ab6665e06dddc34fd98a90b"
|
||||
raw_snapshot_hash: "49b32bf784de01de21874d64b5d1d78d1d245352824a03caa6d6b941a4a2c9a2"
|
||||
text_hash: "6a9f87de545773e3d32f72be995e6720fce8bf887c13ddfad967e69d7f248f60"
|
||||
retrieved_at: "2026-07-04"
|
||||
confidence: "official"
|
||||
tags: ["legal", "us-code"]
|
||||
---
|
||||
|
||||
# 11 U.S.C. § 542 - Turnover of property to the estate
|
||||
|
||||
## Text
|
||||
|
||||
(a) Except as provided in subsection (c) or (d) of this section, an entity, other than a custodian, in possession, custody, or control, during the case, of property that the trustee may use, sell, or lease under section 363 of this title, or that the debtor may exempt under section 522 of this title, shall deliver to the trustee, and account for, such property or the value of such property, unless such property is of inconsequential value or benefit to the estate.
|
||||
|
||||
(b) Except as provided in subsection (c) or (d) of this section, an entity that owes a debt that is property of the estate and that is matured, payable on demand, or payable on order, shall pay such debt to, or on the order of, the trustee, except to the extent that such debt may be offset under section 553 of this title against a claim against the debtor.
|
||||
|
||||
(c) Except as provided in section 362(a)(7) of this title, an entity that has neither actual notice nor actual knowledge of the commencement of the case concerning the debtor may transfer property of the estate, or pay a debt owing to the debtor, in good faith and other than in the manner specified in subsection (d) of this section, to an entity other than the trustee, with the same effect as to the entity making such transfer or payment as if the case under this title concerning the debtor had not been commenced.
|
||||
|
||||
(d) A life insurance company may transfer property of the estate or property of the debtor to such company in good faith, with the same effect with respect to such company as if the case under this title concerning the debtor had not been commenced, if such transfer is to pay a premium or to carry out a nonforfeiture insurance option, and is required to be made automatically, under a life insurance contract with such company that was entered into before the date of the filing of the petition and that is property of the estate.
|
||||
|
||||
(e) Subject to any applicable privilege, after notice and a hearing, the court may order an attorney, accountant, or other person that holds recorded information, including books, documents, records, and papers, relating to the debtor’s property or financial affairs, to turn over or disclose such recorded information to the trustee.
|
||||
|
||||
(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2595; Pub. L. 98–353, title III, § 457, July 10, 1984, 98 Stat. 376; Pub. L. 103–394, title V, § 501(d)(16), Oct. 22, 1994, 108 Stat. 4146.)
|
||||
|
||||
## Notes
|
||||
|
||||
Historical and Revision Notes
|
||||
|
||||
legislative statementsSection 542(a) of the House amendment modifies similar provisions contained in the House bill and the Senate amendment treating with turnover of property to the estate. The section makes clear that any entity, other than a custodian, is required to deliver property of the estate to the trustee or debtor in possession whenever such property is acquired by the entity during the case, if the trustee or debtor in possession may use, sell, or lease the property under section 363, or if the debtor may exempt the property under section 522, unless the property is of inconsequential value or benefit to the estate. This section is not intended to require an entity to deliver property to the trustee if such entity has obtained an order of the court authorizing the entity to retain possession, custody or control of the property. The House amendment adopts section 542(c) of the House bill in preference to a similar provision contained in section 542(c) of the Senate amendment. Protection afforded by section 542(c) applies only to the transferor or payor and not to a transferee or payee receiving a transfer or payment, as the case may be. Such transferee or payee is treated under section 549 and section 550 of title 11. The extent to which the attorney client privilege is valid against the trustee is unclear under current law and is left to be determined by the courts on a case by case basis.
|
||||
|
||||
senate report no. 95–989Subsection (a) of this section requires anyone holding property of the estate on the date of the filing of the petition, or property that the trustee may use, sell, or lease under section 363, to deliver it to the trustee. The subsection also requires an accounting. The holder of property of the estate is excused from the turnover requirement of this subsection if the property held is of inconsequential value to the estate. However, this provision must be read in conjunction with the remainder of the subsection, so that if the property is of inconsequential monetary value, yet has a significant use value for the estate, the holder of the property would not be excused from turnover. Subsection (b) requires an entity that owes money to the debtor as of the date of the petition, or that holds money payable on demand or payable on order, to pay the money to the order of the trustee. An exception is made to the extent that the entity has a valid right of setoff, as recognized by section 553. Subsection (c) provides an exception to subsections (a) and (b). It protects an entity that has neither actual notice nor actual knowledge of the case and that transfers, in good faith, property that is deliverable or payable to the trustee to someone other than to the estate or on order of the estate. This subsection codifies the result of Bank of Marin v. England, 385 U.S. 99 (1966), but does not go so far as to permit bank setoff in violation of the automatic stay, proposed 11 U.S.C. 362(a)(7), even if the bank offsetting the debtor’s balance has no knowledge of the case. Subsection (d) protects life insurance companies that are required by contract to make automatic premium loans from property that might otherwise be property of the estate. Subsection (e) requires an attorney, accountant, or other professional that holds recorded information relating to the debtor’s property or financial affairs, to surrender it to the trustee. This duty is subject to any applicable claim of privilege, such as attorney-client privilege. It is a new provision that deprives accountants and attorneys of the leverage that they have today, under State law lien provisions, to receive payment in full ahead of other creditors when the information they hold is necessary to the administration of the estate.
|
||||
|
||||
Editorial Notes
|
||||
|
||||
Amendments1994—Subsec. (e). Pub. L. 103–394 substituted “to” for “to to” after “financial affairs,”. 1984—Subsec. (e). Pub. L. 98–353 inserted “to turn over or” before “disclose”.
|
||||
|
||||
Statutory Notes and Related Subsidiaries
|
||||
|
||||
Effective Date of 1994 AmendmentAmendment by Pub. L. 103–394 effective Oct. 22, 1994, and not applicable with respect to cases commenced under this title before Oct. 22, 1994, see section 702 of Pub. L. 103–394, set out as a note under section 101 of this title.
|
||||
|
||||
Effective Date of 1984 AmendmentAmendment by Pub. L. 98–353 effective with respect to cases filed 90 days after July 10, 1984, see section 552(a) of Pub. L. 98–353, set out as a note under section 101 of this title.
|
||||
@@ -0,0 +1,73 @@
|
||||
---
|
||||
type: "LegalText"
|
||||
title: "11 U.S.C. § 543"
|
||||
description: "Turnover of property by a custodian"
|
||||
jurisdiction: "us"
|
||||
corpus: "united_states_code"
|
||||
kind: "code_section"
|
||||
title_number: 11
|
||||
title_name: "BANKRUPTCY"
|
||||
chapter_number: "5"
|
||||
chapter_name: "CREDITORS, THE DEBTOR, AND THE ESTATE"
|
||||
section: "543"
|
||||
citation: "11 U.S.C. § 543"
|
||||
status: "current"
|
||||
release_point: "119-100"
|
||||
release_date: "2026-06-26"
|
||||
source: "official"
|
||||
source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc11@119-100.zip"
|
||||
source_identifier: "/us/usc/t11/s543"
|
||||
source_file: "data/legal/raw/us/code/title-11/usc11.xml"
|
||||
source_hash: "efc32ba809ac93f35661b3371261cd9845b0d90e2177f06a2cf84e938a51b712"
|
||||
raw_snapshot_hash: "49b32bf784de01de21874d64b5d1d78d1d245352824a03caa6d6b941a4a2c9a2"
|
||||
text_hash: "aabe76e42a14a2042a528a9ab05900389dcbbd02a6b7c9339eaa1f13c258bd6a"
|
||||
retrieved_at: "2026-07-04"
|
||||
confidence: "official"
|
||||
tags: ["legal", "us-code"]
|
||||
---
|
||||
|
||||
# 11 U.S.C. § 543 - Turnover of property by a custodian
|
||||
|
||||
## Text
|
||||
|
||||
(a) A custodian with knowledge of the commencement of a case under this title concerning the debtor may not make any disbursement from, or take any action in the administration of, property of the debtor, proceeds, product, offspring, rents, or profits of such property, or property of the estate, in the possession, custody, or control of such custodian, except such action as is necessary to preserve such property.
|
||||
|
||||
(b) A custodian shall—
|
||||
|
||||
(1) deliver to the trustee any property of the debtor held by or transferred to such custodian, or proceeds, product, offspring, rents, or profits of such property, that is in such custodian’s possession, custody, or control on the date that such custodian acquires knowledge of the commencement of the case; and
|
||||
|
||||
(2) file an accounting of any property of the debtor, or proceeds, product, offspring, rents, or profits of such property, that, at any time, came into the possession, custody, or control of such custodian.
|
||||
|
||||
(c) The court, after notice and a hearing, shall—
|
||||
|
||||
(1) protect all entities to which a custodian has become obligated with respect to such property or proceeds, product, offspring, rents, or profits of such property;
|
||||
|
||||
(2) provide for the payment of reasonable compensation for services rendered and costs and expenses incurred by such custodian; and
|
||||
|
||||
(3) surcharge such custodian, other than an assignee for the benefit of the debtor’s creditors that was appointed or took possession more than 120 days before the date of the filing of the petition, for any improper or excessive disbursement, other than a disbursement that has been made in accordance with applicable law or that has been approved, after notice and a hearing, by a court of competent jurisdiction before the commencement of the case under this title.
|
||||
|
||||
(d) After notice and hearing, the bankruptcy court—
|
||||
|
||||
(1) may excuse compliance with subsection (a), (b), or (c) of this section if the interests of creditors and, if the debtor is not insolvent, of equity security holders would be better served by permitting a custodian to continue in possession, custody, or control of such property, and
|
||||
|
||||
(2) shall excuse compliance with subsections (a) and (b)(1) of this section if the custodian is an assignee for the benefit of the debtor’s creditors that was appointed or took possession more than 120 days before the date of the filing of the petition, unless compliance with such subsections is necessary to prevent fraud or injustice.
|
||||
|
||||
(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2595; Pub. L. 98–353, title III, § 458, July 10, 1984, 98 Stat. 376; Pub. L. 103–394, title V, § 501(d)(17), Oct. 22, 1994, 108 Stat. 4146.)
|
||||
|
||||
## Notes
|
||||
|
||||
Historical and Revision Notes
|
||||
|
||||
legislative statementsSection 543(a) is a modification of similar provisions contained in the House bill and the Senate amendment. The provision clarifies that a custodian may always act as is necessary to preserve property of the debtor. Section 543(c)(3) excepts from surcharge a custodian that is an assignee for the benefit of creditors, who was appointed or took possession before 120 days before the date of the filing of the petition, whichever is later. The provision also prevents a custodian from being surcharged in connection with payments made in accordance with applicable law.
|
||||
|
||||
senate report no. 95–989This section requires a custodian appointed before the bankruptcy case to deliver to the trustee and to account for property that has come into his possession, custody, or control as a custodian. “Property of the debtor” in section (a) includes property that was property of the debtor at the time the custodian took the property, but the title to which passed to the custodian. The section requires the court to protect any obligations incurred by the custodian, provide for the payment of reasonable compensation for services rendered and costs and expenses incurred by the custodian, and to surcharge the custodian for any improper or excessive disbursement, unless it has been approved by a court of competent jurisdiction. Subsection (d) reinforces the general abstention policy in section 305 by permitting the bankruptcy court to authorize the custodianship to proceed notwithstanding this section.
|
||||
|
||||
Editorial Notes
|
||||
|
||||
Amendments1994—Subsec. (d)(1). Pub. L. 103–394 struck out comma after “section”. 1984—Subsec. (a). Pub. L. 98–353, § 458(a), inserted “, product, offspring, rents, or profits” after “proceeds”. Subsec. (b)(1). Pub. L. 98–353, § 458(b)(1), inserted “held by or” after “debtor”, and “, product, offspring, rents, or profits” after “proceeds”. Subsec. (b)(2). Pub. L. 98–353, § 458(b)(2), inserted “, product, offspring, rents, or profits” after “proceeds”. Subsec. (c)(1). Pub. L. 98–353, § 458(c)(1), inserted “or proceeds, product, offspring, rents, or profits of such property” after “property”. Subsec. (c)(3). Pub. L. 98–353, § 458(c)(2), inserted “that has been” before “approved”. Subsec. (d). Pub. L. 98–353, § 458(d), designated existing provisions as par. (1) and added par. (2).
|
||||
|
||||
Statutory Notes and Related Subsidiaries
|
||||
|
||||
Effective Date of 1994 AmendmentAmendment by Pub. L. 103–394 effective Oct. 22, 1994, and not applicable with respect to cases commenced under this title before Oct. 22, 1994, see section 702 of Pub. L. 103–394, set out as a note under section 101 of this title.
|
||||
|
||||
Effective Date of 1984 AmendmentAmendment by Pub. L. 98–353 effective with respect to cases filed 90 days after July 10, 1984, see section 552(a) of Pub. L. 98–353, set out as a note under section 101 of this title.
|
||||
@@ -0,0 +1,65 @@
|
||||
---
|
||||
type: "LegalText"
|
||||
title: "11 U.S.C. § 544"
|
||||
description: "Trustee as lien creditor and as successor to certain creditors and purchasers"
|
||||
jurisdiction: "us"
|
||||
corpus: "united_states_code"
|
||||
kind: "code_section"
|
||||
title_number: 11
|
||||
title_name: "BANKRUPTCY"
|
||||
chapter_number: "5"
|
||||
chapter_name: "CREDITORS, THE DEBTOR, AND THE ESTATE"
|
||||
section: "544"
|
||||
citation: "11 U.S.C. § 544"
|
||||
status: "current"
|
||||
release_point: "119-100"
|
||||
release_date: "2026-06-26"
|
||||
source: "official"
|
||||
source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc11@119-100.zip"
|
||||
source_identifier: "/us/usc/t11/s544"
|
||||
source_file: "data/legal/raw/us/code/title-11/usc11.xml"
|
||||
source_hash: "11671968ceef6e80c470425fe5bc543042ee2d855736f886f84adda122759cd0"
|
||||
raw_snapshot_hash: "49b32bf784de01de21874d64b5d1d78d1d245352824a03caa6d6b941a4a2c9a2"
|
||||
text_hash: "88893ab86d82ed095f8f7a7f1dcc87a73a08b2249fe373c31794c71b0d4c7eac"
|
||||
retrieved_at: "2026-07-04"
|
||||
confidence: "official"
|
||||
tags: ["legal", "us-code"]
|
||||
---
|
||||
|
||||
# 11 U.S.C. § 544 - Trustee as lien creditor and as successor to certain creditors and purchasers
|
||||
|
||||
## Text
|
||||
|
||||
(a) The trustee shall have, as of the commencement of the case, and without regard to any knowledge of the trustee or of any creditor, the rights and powers of, or may avoid any transfer of property of the debtor or any obligation incurred by the debtor that is voidable by—
|
||||
|
||||
(1) a creditor that extends credit to the debtor at the time of the commencement of the case, and that obtains, at such time and with respect to such credit, a judicial lien on all property on which a creditor on a simple contract could have obtained such a judicial lien, whether or not such a creditor exists;
|
||||
|
||||
(2) a creditor that extends credit to the debtor at the time of the commencement of the case, and obtains, at such time and with respect to such credit, an execution against the debtor that is returned unsatisfied at such time, whether or not such a creditor exists; or
|
||||
|
||||
(3) a bona fide purchaser of real property, other than fixtures, from the debtor, against whom applicable law permits such transfer to be perfected, that obtains the status of a bona fide purchaser and has perfected such transfer at the time of the commencement of the case, whether or not such a purchaser exists.
|
||||
|
||||
(b) (1) Except as provided in paragraph (2), the trustee may avoid any transfer of an interest of the debtor in property or any obligation incurred by the debtor that is voidable under applicable law by a creditor holding an unsecured claim that is allowable under section 502 of this title or that is not allowable only under section 502(e) of this title.
|
||||
|
||||
(2) Paragraph (1) shall not apply to a transfer of a charitable contribution (as that term is defined in section 548(d)(3)) that is not covered under section 548(a)(1)(B), by reason of section 548(a)(2). Any claim by any person to recover a transferred contribution described in the preceding sentence under Federal or State law in a Federal or State court shall be preempted by the commencement of the case.
|
||||
|
||||
(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2596; Pub. L. 98–353, title III, § 459, July 10, 1984, 98 Stat. 377; Pub. L. 105–183, § 3(b), June 19, 1998, 112 Stat. 518.)
|
||||
|
||||
## Notes
|
||||
|
||||
Historical and Revision Notes
|
||||
|
||||
legislative statementsSection 544(a)(3) modifies similar provisions contained in the House bill and Senate amendment so as not to require a creditor to perform the impossible in order to perfect his interest. Both the lien creditor test in section 544(a)(1), and the bona fide purchaser test in section 544(a)(3) should not require a transferee to perfect a transfer against an entity with respect to which applicable law does not permit perfection. The avoiding powers under section 544(a)(1), (2), and (3) are new. In particular, section 544(a)(1) overrules Pacific Finance Corp. v. Edwards, 309 F.2d 224 (9th Cir. 1962), and In re Federals, Inc., 553 F.2d 509 (6th Cir. 1977), insofar as those cases held that the trustee did not have the status of a creditor who extended credit immediately prior to the commencement of the case. The House amendment deletes section 544(c) of the House bill.
|
||||
|
||||
senate report no. 95–989Subsection (a) is the “strong arm clause” of current law, now found in Bankruptcy Act § 70c [section 110(c) of former title 11]. It gives the trustee the rights of a creditor on a simple contract with a judicial lien on the property of the debtor as of the date of the petition; of a creditor with a writ of execution against the property of the debtor unsatisfied as of the date of the petition; and a bona fide purchaser of the real property of the debtor as of the date of the petition. “Simple contract” as used here is derived from Bankruptcy Act § 60a(4) [section 96(a)(4) of former title 11]. The third status, that of a bona fide purchaser of real property, is new. Subsection (b) is derived from current section 70e [section 110(e) of former title 11]. It gives the trustee the rights of actual unsecured creditors under applicable law to void transfers. It follows Moore v. Bay, 284 U.S. 4 (1931), and overrules those cases that hold section 70e gives the trustee the rights of secured creditors.
|
||||
|
||||
Editorial Notes
|
||||
|
||||
Amendments1998—Subsec. (b). Pub. L. 105–183 designated existing provisions as par. (1), substituted “Except as provided in paragraph (2), the trustee” for “The trustee”, and added par. (2). 1984—Subsec. (a)(1). Pub. L. 98–353, § 459(1), inserted “such” after “obtained”. Subsec. (a)(2). Pub. L. 98–353, § 459(2), substituted “; or” for “; and”. Subsec. (a)(3). Pub. L. 98–353, § 459(3), inserted “, other than fixtures,” after “property”, and “and has perfected such transfer” after “purchaser” the second place it appeared.
|
||||
|
||||
Statutory Notes and Related Subsidiaries
|
||||
|
||||
Effective Date of 1998 AmendmentPub. L. 105–183, § 5, June 19, 1998, 112 Stat. 518, provided that: “This Act [amending this section and sections 546, 548, 707, and 1325 of this title and enacting provisions set out as notes under this section and section 101 of this title] and the amendments made by this Act shall apply to any case brought under an applicable provision of title 11, United States Code, that is pending or commenced on or after the date of enactment of this Act [June 19, 1998].”
|
||||
|
||||
Effective Date of 1984 AmendmentAmendment by Pub. L. 98–353 effective with respect to cases filed 90 days after July 10, 1984, see section 552(a) of Pub. L. 98–353, set out as a note under section 101 of this title.
|
||||
|
||||
Construction of 1998 AmendmentPub. L. 105–183, § 6, June 19, 1998, 112 Stat. 519, provided that: “Nothing in the amendments made by this Act [amending this section and sections 546, 548, 707, and 1325 of this title] is intended to limit the applicability of the Religious Freedom Restoration Act of 1993 (42 U.S.C. 2002bb [2000bb] et seq.).”
|
||||
@@ -0,0 +1,75 @@
|
||||
---
|
||||
type: "LegalText"
|
||||
title: "11 U.S.C. § 545"
|
||||
description: "Statutory liens"
|
||||
jurisdiction: "us"
|
||||
corpus: "united_states_code"
|
||||
kind: "code_section"
|
||||
title_number: 11
|
||||
title_name: "BANKRUPTCY"
|
||||
chapter_number: "5"
|
||||
chapter_name: "CREDITORS, THE DEBTOR, AND THE ESTATE"
|
||||
section: "545"
|
||||
citation: "11 U.S.C. § 545"
|
||||
status: "current"
|
||||
release_point: "119-100"
|
||||
release_date: "2026-06-26"
|
||||
source: "official"
|
||||
source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc11@119-100.zip"
|
||||
source_identifier: "/us/usc/t11/s545"
|
||||
source_file: "data/legal/raw/us/code/title-11/usc11.xml"
|
||||
source_hash: "4a0a66ed71df978ab45384ee3b06187125d42aa06e6d2f7331a55cb1caddf964"
|
||||
raw_snapshot_hash: "49b32bf784de01de21874d64b5d1d78d1d245352824a03caa6d6b941a4a2c9a2"
|
||||
text_hash: "0fdb04a4324c612cec3af606a73e40b34732bdf86168d8f33706293fccdbc88a"
|
||||
retrieved_at: "2026-07-04"
|
||||
confidence: "official"
|
||||
tags: ["legal", "us-code"]
|
||||
---
|
||||
|
||||
# 11 U.S.C. § 545 - Statutory liens
|
||||
|
||||
## Text
|
||||
|
||||
The trustee may avoid the fixing of a statutory lien on property of the debtor to the extent that such lien—
|
||||
|
||||
(1) first becomes effective against the debtor—
|
||||
|
||||
(A) when a case under this title concerning the debtor is commenced;
|
||||
|
||||
(B) when an insolvency proceeding other than under this title concerning the debtor is commenced;
|
||||
|
||||
(C) when a custodian is appointed or authorized to take or takes possession;
|
||||
|
||||
(D) when the debtor becomes insolvent;
|
||||
|
||||
(E) when the debtor’s financial condition fails to meet a specified standard; or
|
||||
|
||||
(F) at the time of an execution against property of the debtor levied at the instance of an entity other than the holder of such statutory lien;
|
||||
|
||||
(2) is not perfected or enforceable at the time of the commencement of the case against a bona fide purchaser that purchases such property at the time of the commencement of the case, whether or not such a purchaser exists, except in any case in which a purchaser is a purchaser described in section 6323 of the Internal Revenue Code of 1986, or in any other similar provision of State or local law;
|
||||
|
||||
(3) is for rent; or
|
||||
|
||||
(4) is a lien of distress for rent.
|
||||
|
||||
(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2597; Pub. L. 98–353, title III, § 460, July 10, 1984, 98 Stat. 377; Pub. L. 109–8, title VII, § 711, Apr. 20, 2005, 119 Stat. 127.)
|
||||
|
||||
## Notes
|
||||
|
||||
Historical and Revision Notes
|
||||
|
||||
legislative statementsSection 545 of the House amendment modifies similar provisions contained in the House bill and Senate amendment to make clear that a statutory lien may be avoided under section 545 only to the extent the lien violates the perfection standards of section 545. Thus a Federal tax lien is invalid under section 545(2) with respect to property specified in sections 6323(b) and (c) of the Internal Revenue Code of 1954 [title 26]. As a result of this modification, section 545(b) of the Senate amendment is deleted as unnecessary. Statutory liens: The House amendment retains the provision of section 545(2) of the House bill giving the trustee in a bankruptcy case the same power which a bona fide purchaser has to take over certain kinds of personal property despite the existence of a tax lien covering that property. The amendment thus retains present law, and deletes section 545(b) of the Senate amendment which would have no longer allowed the trustee to step into the shoes of a bona fide purchaser for this purpose.
|
||||
|
||||
senate report no. 95–989This section permits the trustee to avoid the fixing of certain statutory liens. It is derived from subsections 67b and 67c of present law [section 107(b) and (c) of former title 11]. Liens that first become effective on the bankruptcy or insolvency of the debtor are voidable by the trustee. Liens that are not perfected or enforceable on the date of the petition against a bona fide purchaser are voidable. If a transferee is able to perfect under section 546(a) and that perfection relates back to an earlier date, then in spite of the filing of the bankruptcy petition, the trustee would not be able to defeat the lien, because the lien would be perfected and enforceable against a bona fide purchaser that purchased the property on the date of the filing of the petition. Finally, a lien for rent or of distress for rent is voidable, whether the lien is a statutory lien or a common law lien of distress for rent. See proposed 11 U.S.C. 101(37); Bankruptcy Act § 67(c)(1)(C). The trustee may avoid a lien under this section even if the lien has been enforced by sale before the commencement of the case. To that extent, Bankruptcy Act § 67c(5) is not followed. Subsection (b) limits the trustee’s power to avoid tax liens under Federal, state, or local law. For example, under § 6323 of the Internal Revenue Code [Title 26]. Once public notice of a tax lien has been filed, the Government is generally entitled to priority over subsequent lienholders. However, certain purchasers who acquire an interest in certain specific kinds of personal property will take free of an existing filed tax lien attaching to such property. Among the specific kinds of personal property which a purchaser can acquire free of an existing tax lien (unless the buyer knows of the existence of the lien) are stocks and securities, motor vehicles, inventory, and certain household goods. Under the present Bankruptcy Act (§ 67(c)(1)) [section 107(c)(1) of former title 11], the trustee may be viewed as a bona fide purchaser, so that he can take over any such designated items free of tax liens even if the tax authority has perfected its lien. However, the reasons for enabling a bona fide purchaser to take these kinds of assets free of an unfiled tax lien, that is, to encourage free movement of these assets in general commerce, do not apply to a trustee in a title 11 case, who is not in the same position as an ordinary bona fide purchaser as to such property. The bill accordingly adds a new subsection (b) to sec. 545 providing, in effect, that a trustee in bankruptcy does not have the right under this section to take otherwise specially treated items of personal property free of a tax lien filed before the filing of the petition.
|
||||
|
||||
Editorial Notes
|
||||
|
||||
References in TextSection 6323 of the Internal Revenue Code of 1986, referred to in par. (2), is classified to section 6323 of Title 26, Internal Revenue Code.
|
||||
|
||||
Amendments2005—Par. (2). Pub. L. 109–8 inserted before semicolon at end “, except in any case in which a purchaser is a purchaser described in section 6323 of the Internal Revenue Code of 1986, or in any other similar provision of State or local law”. 1984—Par. (1)(A). Pub. L. 98–353, § 460(1), struck out “is” after “is”. Par. (1)(C). Pub. L. 98–353, § 460(2), substituted “appointed or authorized to take” for “apponted”. Par. (2). Pub. L. 98–353, § 460(3), substituted “at the time of the commencement of the case” for “on the date of the filing of the petition” in two places.
|
||||
|
||||
Statutory Notes and Related Subsidiaries
|
||||
|
||||
Effective Date of 2005 AmendmentAmendment by Pub. L. 109–8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of this title.
|
||||
|
||||
Effective Date of 1984 AmendmentAmendment by Pub. L. 98–353 effective with respect to cases filed 90 days after July 10, 1984, see section 552(a) of Pub. L. 98–353, set out as a note under section 101 of this title.
|
||||
File diff suppressed because one or more lines are too long
File diff suppressed because one or more lines are too long
@@ -0,0 +1,129 @@
|
||||
---
|
||||
type: "LegalText"
|
||||
title: "11 U.S.C. § 548"
|
||||
description: "Fraudulent transfers and obligations"
|
||||
jurisdiction: "us"
|
||||
corpus: "united_states_code"
|
||||
kind: "code_section"
|
||||
title_number: 11
|
||||
title_name: "BANKRUPTCY"
|
||||
chapter_number: "5"
|
||||
chapter_name: "CREDITORS, THE DEBTOR, AND THE ESTATE"
|
||||
section: "548"
|
||||
citation: "11 U.S.C. § 548"
|
||||
status: "current"
|
||||
release_point: "119-100"
|
||||
release_date: "2026-06-26"
|
||||
source: "official"
|
||||
source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc11@119-100.zip"
|
||||
source_identifier: "/us/usc/t11/s548"
|
||||
source_file: "data/legal/raw/us/code/title-11/usc11.xml"
|
||||
source_hash: "c4a2528181f5d73aed0bdc530665e8671a569a55313e6ff744436aac8f51326e"
|
||||
raw_snapshot_hash: "49b32bf784de01de21874d64b5d1d78d1d245352824a03caa6d6b941a4a2c9a2"
|
||||
text_hash: "1837f26c638e40a59160a6da8f254cbf99cda72826562bb77297d6a602190cc7"
|
||||
retrieved_at: "2026-07-04"
|
||||
confidence: "official"
|
||||
tags: ["legal", "us-code"]
|
||||
---
|
||||
|
||||
# 11 U.S.C. § 548 - Fraudulent transfers and obligations
|
||||
|
||||
## Text
|
||||
|
||||
(a) (1) The trustee may avoid any transfer (including any transfer to or for the benefit of an insider under an employment contract) of an interest of the debtor in property, or any obligation (including any obligation to or for the benefit of an insider under an employment contract) incurred by the debtor, that was made or incurred on or within 2 years before the date of the filing of the petition, if the debtor voluntarily or involuntarily—
|
||||
|
||||
(A) made such transfer or incurred such obligation with actual intent to hinder, delay, or defraud any entity to which the debtor was or became, on or after the date that such transfer was made or such obligation was incurred, indebted; or
|
||||
|
||||
(B) (i) received less than a reasonably equivalent value in exchange for such transfer or obligation; and
|
||||
|
||||
(ii) (I) was insolvent on the date that such transfer was made or such obligation was incurred, or became insolvent as a result of such transfer or obligation;
|
||||
|
||||
(II) was engaged in business or a transaction, or was about to engage in business or a transaction, for which any property remaining with the debtor was an unreasonably small capital;
|
||||
|
||||
(III) intended to incur, or believed that the debtor would incur, debts that would be beyond the debtor’s ability to pay as such debts matured; or
|
||||
|
||||
(IV) made such transfer to or for the benefit of an insider, or incurred such obligation to or for the benefit of an insider, under an employment contract and not in the ordinary course of business.
|
||||
|
||||
(2) A transfer of a charitable contribution to a qualified religious or charitable entity or organization shall not be considered to be a transfer covered under paragraph (1)(B) in any case in which—
|
||||
|
||||
(A) the amount of that contribution does not exceed 15 percent of the gross annual income of the debtor for the year in which the transfer of the contribution is made; or
|
||||
|
||||
(B) the contribution made by a debtor exceeded the percentage amount of gross annual income specified in subparagraph (A), if the transfer was consistent with the practices of the debtor in making charitable contributions.
|
||||
|
||||
(b) The trustee of a partnership debtor may avoid any transfer of an interest of the debtor in property, or any obligation incurred by the debtor, that was made or incurred on or within 2 years before the date of the filing of the petition, to a general partner in the debtor, if the debtor was insolvent on the date such transfer was made or such obligation was incurred, or became insolvent as a result of such transfer or obligation.
|
||||
|
||||
(c) Except to the extent that a transfer or obligation voidable under this section is voidable under section 544, 545, or 547 of this title, a transferee or obligee of such a transfer or obligation that takes for value and in good faith has a lien on or may retain any interest transferred or may enforce any obligation incurred, as the case may be, to the extent that such transferee or obligee gave value to the debtor in exchange for such transfer or obligation.
|
||||
|
||||
(d) (1) For the purposes of this section, a transfer is made when such transfer is so perfected that a bona fide purchaser from the debtor against whom applicable law permits such transfer to be perfected cannot acquire an interest in the property transferred that is superior to the interest in such property of the transferee, but if such transfer is not so perfected before the commencement of the case, such transfer is made immediately before the date of the filing of the petition.
|
||||
|
||||
(2) In this section—
|
||||
|
||||
(A) “value” means property, or satisfaction or securing of a present or antecedent debt of the debtor, but does not include an unperformed promise to furnish support to the debtor or to a relative of the debtor;
|
||||
|
||||
(B) a commodity broker, forward contract merchant, stockbroker, financial institution, financial participant, or securities clearing agency that receives a margin payment, as defined in section 101, 741, or 761 of this title, or settlement payment, as defined in section 101 or 741 of this title, takes for value to the extent of such payment;
|
||||
|
||||
(C) a repo participant or financial participant that receives a margin payment, as defined in section 741 or 761 of this title, or settlement payment, as defined in section 741 of this title, in connection with a repurchase agreement, takes for value to the extent of such payment;
|
||||
|
||||
(D) a swap participant or financial participant that receives a transfer in connection with a swap agreement takes for value to the extent of such transfer; and
|
||||
|
||||
(E) a master netting agreement participant that receives a transfer in connection with a master netting agreement or any individual contract covered thereby takes for value to the extent of such transfer, except that, with respect to a transfer under any individual contract covered thereby, to the extent that such master netting agreement participant otherwise did not take (or is otherwise not deemed to have taken) such transfer for value.
|
||||
|
||||
(3) In this section, the term “charitable contribution” means a charitable contribution, as that term is defined in section 170(c) of the Internal Revenue Code of 1986, if that contribution—
|
||||
|
||||
(A) is made by a natural person; and
|
||||
|
||||
(B) consists of—
|
||||
|
||||
(i) a financial instrument (as that term is defined in section 731(c)(2)(C) of the Internal Revenue Code of 1986); or
|
||||
|
||||
(ii) cash.
|
||||
|
||||
(4) In this section, the term “qualified religious or charitable entity or organization” means—
|
||||
|
||||
(A) an entity described in section 170(c)(1) of the Internal Revenue Code of 1986; or
|
||||
|
||||
(B) an entity or organization described in section 170(c)(2) of the Internal Revenue Code of 1986.
|
||||
|
||||
(e) (1) In addition to any transfer that the trustee may otherwise avoid, the trustee may avoid any transfer of an interest of the debtor in property that was made on or within 10 years before the date of the filing of the petition, if—
|
||||
|
||||
(A) such transfer was made to a self-settled trust or similar device;
|
||||
|
||||
(B) such transfer was by the debtor;
|
||||
|
||||
(C) the debtor is a beneficiary of such trust or similar device; and
|
||||
|
||||
(D) the debtor made such transfer with actual intent to hinder, delay, or defraud any entity to which the debtor was or became, on or after the date that such transfer was made, indebted.
|
||||
|
||||
(2) For the purposes of this subsection, a transfer includes a transfer made in anticipation of any money judgment, settlement, civil penalty, equitable order, or criminal fine incurred by, or which the debtor believed would be incurred by—
|
||||
|
||||
(A) any violation of the securities laws (as defined in section 3(a)(47) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(47))), any State securities laws, or any regulation or order issued under Federal securities laws or State securities laws; or
|
||||
|
||||
(B) fraud, deceit, or manipulation in a fiduciary capacity or in connection with the purchase or sale of any security registered under section 12 or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78l and 78o(d)) or under section 6 of the Securities Act of 1933 (15 U.S.C. 77f).
|
||||
|
||||
(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2600; Pub. L. 97–222, § 5, July 27, 1982, 96 Stat. 236; Pub. L. 98–353, title III, §§ 394, 463, July 10, 1984, 98 Stat. 365, 378; Pub. L. 99–554, title II, § 283(n), Oct. 27, 1986, 100 Stat. 3117; Pub. L. 101–311, title I, § 104, title II, § 204, June 25, 1990, 104 Stat. 268, 269; Pub. L. 103–394, title V, § 501(b)(5), Oct. 22, 1994, 108 Stat. 4142; Pub. L. 105–183, §§ 2, 3(a), June 19, 1998, 112 Stat. 517; Pub. L. 109–8, title IX, § 907(f), (o)(4)–(6), title XIV, § 1402, Apr. 20, 2005, 119 Stat. 177, 182, 214.)
|
||||
|
||||
## Notes
|
||||
|
||||
Historical and Revision Notes
|
||||
|
||||
legislative statementsSection 548(d)(2) is modified to reflect general application of a provision contained in section 766 of the Senate amendment with respect to commodity brokers. In particular, section 548(d)(2)(B) of the House amendment makes clear that a commodity broker who receives a margin payment is considered to receive the margin payment in return for “value” for purposes of section 548.
|
||||
|
||||
senate report no. 95–989This section is derived in large part from section 67d of the Bankruptcy Act [section 107(d) of former title 11]. It permits the trustee to avoid transfers by the debtor in fraud of his creditors. Its history dates from the statute of 13 Eliz. c. 5 (1570). The trustee may avoid fraudulent transfers or obligations if made with actual intent to hinder, delay, or defraud a past or future creditor. Transfers made for less than a reasonably equivalent consideration are also vulnerable if the debtor was or thereby becomes insolvent, was engaged in business with an unreasonably small capital, or intended to incur debts that would be beyond his ability to repay. The trustee of a partnership debtor may avoid any transfer of partnership property to a partner in the debtor if the debtor was or thereby became insolvent. If a transferee’s only liability to the trustee is under this section, and if he takes for value and in good faith, then subsection (c) grants him a lien on the property transferred, or other similar protection. Subsection (d) specifies that for the purposes of fraudulent transfer section, a transfer is made when it is valid against a subsequent bona fide purchaser. If not made before the commencement of the case, it is considered made immediately before then. Subsection (d) also defines “value” to mean property, or the satisfaction or securing of a present or antecedent debt, but does not include an unperformed promise to furnish support to the debtor or a relative of the debtor.
|
||||
|
||||
Editorial Notes
|
||||
|
||||
References in TextSections 170(c) and 731(c)(2)(C) of the Internal Revenue Code of 1986, referred to in subsec. (d)(3), (4), are classified to sections 170(c) and 731(c)(2)(C), respectively, of Title 26, Internal Revenue Code.
|
||||
|
||||
Amendments2005—Subsec. (a)(1). Pub. L. 109–8, § 1402(2), in introductory provisions, inserted “(including any transfer to or for the benefit of an insider under an employment contract)” after “avoid any transfer” and “(including any obligation to or for the benefit of an insider under an employment contract)” after “or any obligation”. Pub. L. 109–8, § 1402(1), substituted “2 years” for “one year” in introductory provisions. Subsec. (a)(1)(B)(ii)(IV). Pub. L. 109–8, § 1402(3), added subcl. (IV). Subsec. (b). Pub. L. 109–8, § 1402(1), substituted “2 years” for “one year”. Subsec. (d)(2)(B). Pub. L. 109–8, § 907(o)(4), inserted “financial participant,” after “financial institution,”. Subsec. (d)(2)(C). Pub. L. 109–8, § 907(o)(5), inserted “or financial participant” after “repo participant”. Subsec. (d)(2)(D). Pub. L. 109–8, § 907(o)(6), inserted “or financial participant” after “swap participant”. Subsec. (d)(2)(E). Pub. L. 109–8, § 907(f), added subpar. (E). Subsec. (e). Pub. L. 109–8, § 1402(4), added subsec. (e). 1998—Subsec. (a). Pub. L. 105–183, § 3(a), designated existing provisions as par. (1), redesignated former pars. (1) and (2) as par. (1)(A) and (B), respectively, redesignated former par. (2)(A) and (B) as par. (1)(B)(i) and (ii), respectively, and redesignated former par. (2)(B)(i) to (iii) as par. (1)(B)(ii)(I) to (III), respectively, and added par. (2). Subsec. (d)(3), (4). Pub. L. 105–183, § 2, added pars. (3) and (4). 1994—Subsec. (d)(2)(B). Pub. L. 103–394, § 501(b)(5)(A), substituted “section 101, 741, or 761” for “section 101(34), 741(5) or 761(15)” and “section 101 or 741” for “section 101(35) or 741(8)”. Subsec. (d)(2)(C). Pub. L. 103–394, § 501(b)(5)(B), substituted “section 741 or 761” for “section 741(5) or 761(15)” and “section 741” for “section 741(8)”. 1990—Subsec. (d)(2)(B). Pub. L. 101–311, § 204, inserted reference to sections 101(34) and 101(35) of this title. Subsec. (d)(2)(D). Pub. L. 101–311, § 104, added subpar. (D). 1986—Subsec. (d)(2)(B). Pub. L. 99–554 substituted “, financial institution” for “financial institution,”. 1984—Subsec. (a). Pub. L. 98–353, § 463(a)(1), substituted “if the debtor voluntarily or involuntarily” for “if the debtor” in provisions preceding par. (1). Subsec. (a)(1). Pub. L. 98–353, § 463(a)(2), substituted “was made” for “occurred”. Subsec. (a)(2)(B)(ii). Pub. L. 98–353, § 463(a)(3), inserted “or a transaction” after “engaged in business”. Subsec. (c). Pub. L. 98–353, § 463(b), inserted “or may retain” after “lien on” and struck out “, may retain any lien transferred,” before “or may enforce any obligation incurred”. Subsec. (d)(1). Pub. L. 98–353, § 463(c)(1), substituted “is so” for “becomes so far”, “applicable law permits such transfer to be” for “such transfer could have been”, and “is made” for “occurs”. Subsec. (d)(2)(B). Pub. L. 98–353, § 463(c)(2), inserted “financial institution,” after “stockbroker”. Subsec. (d)(2)(C). Pub. L. 98–353, § 394(2), added subpar. (C). 1982—Subsec. (d)(2)(B). Pub. L. 97–222 substituted “a commodity broker, forward contract merchant, stockbroker, or securities clearing agency that receives a margin payment, as defined in section 741(5) or 761(15) of this title, or settlement payment, as defined in section 741(8) of this title, takes for value to extent of such payment” for “a commodity broker or forward contract merchant that receives a margin payment, as defined in section 761(15) of this title, takes for value”.
|
||||
|
||||
Statutory Notes and Related Subsidiaries
|
||||
|
||||
Effective Date of 2005 AmendmentAmendment by section 1402 of Pub. L. 109–8 effective Apr. 20, 2005, and applicable only with respect to cases commenced under this title on or after such date, with amendment by par. (1) of such section applicable only with respect to cases commenced under this title more than 1 year after Apr. 20, 2005, see section 1406 of Pub. L. 109–8, set out as a note under section 507 of this title. Amendment by section 907 of Pub. L. 109–8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of this title.
|
||||
|
||||
Effective Date of 1998 AmendmentAmendment by Pub. L. 105–183 applicable to any case brought under an applicable provision of this title that is pending or commenced on or after June 19, 1998, see section 5 of Pub. L. 105–183, set out as a note under section 544 of this title.
|
||||
|
||||
Effective Date of 1994 AmendmentAmendment by Pub. L. 103–394 effective Oct. 22, 1994, and not applicable with respect to cases commenced under this title before Oct. 22, 1994, see section 702 of Pub. L. 103–394, set out as a note under section 101 of this title.
|
||||
|
||||
Effective Date of 1986 AmendmentAmendment by Pub. L. 99–554 effective 30 days after Oct. 27, 1986, see section 302(a) of Pub. L. 99–554, set out as a note under section 581 of Title 28, Judiciary and Judicial Procedure.
|
||||
|
||||
Effective Date of 1984 AmendmentAmendment by Pub. L. 98–353 effective with respect to cases filed 90 days after July 10, 1984, see section 552(a) of Pub. L. 98–353, set out as a note under section 101 of this title.
|
||||
@@ -0,0 +1,73 @@
|
||||
---
|
||||
type: "LegalText"
|
||||
title: "11 U.S.C. § 549"
|
||||
description: "Postpetition transactions"
|
||||
jurisdiction: "us"
|
||||
corpus: "united_states_code"
|
||||
kind: "code_section"
|
||||
title_number: 11
|
||||
title_name: "BANKRUPTCY"
|
||||
chapter_number: "5"
|
||||
chapter_name: "CREDITORS, THE DEBTOR, AND THE ESTATE"
|
||||
section: "549"
|
||||
citation: "11 U.S.C. § 549"
|
||||
status: "current"
|
||||
release_point: "119-100"
|
||||
release_date: "2026-06-26"
|
||||
source: "official"
|
||||
source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc11@119-100.zip"
|
||||
source_identifier: "/us/usc/t11/s549"
|
||||
source_file: "data/legal/raw/us/code/title-11/usc11.xml"
|
||||
source_hash: "2923a07fcf2f9f6745de6c6df1589f003c6d27a28d1066154e6d8d2b55951175"
|
||||
raw_snapshot_hash: "49b32bf784de01de21874d64b5d1d78d1d245352824a03caa6d6b941a4a2c9a2"
|
||||
text_hash: "8df59bc7ae84779e25299f366acb488cf187eb3aaae2731ba92687106028d948"
|
||||
retrieved_at: "2026-07-04"
|
||||
confidence: "official"
|
||||
tags: ["legal", "us-code"]
|
||||
---
|
||||
|
||||
# 11 U.S.C. § 549 - Postpetition transactions
|
||||
|
||||
## Text
|
||||
|
||||
(a) Except as provided in subsection (b) or (c) of this section, the trustee may avoid a transfer of property of the estate—
|
||||
|
||||
(1) that occurs after the commencement of the case; and
|
||||
|
||||
(2) (A) that is authorized only under section 303(f) or 542(c) of this title; or
|
||||
|
||||
(B) that is not authorized under this title or by the court.
|
||||
|
||||
(b) In an involuntary case, the trustee may not avoid under subsection (a) of this section a transfer made after the commencement of such case but before the order for relief to the extent any value, including services, but not including satisfaction or securing of a debt that arose before the commencement of the case, is given after the commencement of the case in exchange for such transfer, notwithstanding any notice or knowledge of the case that the transferee has.
|
||||
|
||||
(c) The trustee may not avoid under subsection (a) of this section a transfer of an interest in real property to a good faith purchaser without knowledge of the commencement of the case and for present fair equivalent value unless a copy or notice of the petition was filed, where a transfer of an interest in such real property may be recorded to perfect such transfer, before such transfer is so perfected that a bona fide purchaser of such real property, against whom applicable law permits such transfer to be perfected, could not acquire an interest that is superior to such interest of such good faith purchaser. A good faith purchaser without knowledge of the commencement of the case and for less than present fair equivalent value has a lien on the property transferred to the extent of any present value given, unless a copy or notice of the petition was so filed before such transfer was so perfected.
|
||||
|
||||
(d) An action or proceeding under this section may not be commenced after the earlier of—
|
||||
|
||||
(1) two years after the date of the transfer sought to be avoided; or
|
||||
|
||||
(2) the time the case is closed or dismissed.
|
||||
|
||||
(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2601; Pub. L. 98–353, title III, § 464, July 10, 1984, 98 Stat. 379; Pub. L. 99–554, title II, § 283(o), Oct. 27, 1986, 100 Stat. 3117; Pub. L. 103–394, title V, § 501(d)(18), Oct. 22, 1994, 108 Stat. 4146; Pub. L. 109–8, title XII, § 1214, Apr. 20, 2005, 119 Stat. 195.)
|
||||
|
||||
## Notes
|
||||
|
||||
Historical and Revision Notes
|
||||
|
||||
legislative statementsSection 549 of the House amendment has been redrafted in order to incorporate sections 342(b) and (c) of the Senate amendment. Those sections have been consolidated and redrafted in section 549(c) of the House amendment. Section 549(d) of the House amendment adopts a provision contained in section 549(c) of the Senate amendment.
|
||||
|
||||
senate report no. 95–989This section modifies section 70d of current law [section 110(d) of former title 11]. It permits the trustee to avoid transfers of property that occur after the commencement of the case. The transfer must either have been unauthorized, or authorized under a section that protects only the transferor. Subsection (b) protects “involuntary gap” transferees to the extent of any value (including services, but not including satisfaction of a debt that arose before the commencement of the case), given after commencement in exchange for the transfer. Notice or knowledge of the transferee is irrelevant in determining whether he is protected under this provision.
|
||||
|
||||
Editorial Notes
|
||||
|
||||
Amendments2005—Subsec. (c). Pub. L. 109–8 inserted “an interest in” after “transfer of” in two places and substituted “purchaser of such real property” for “purchaser of such property” and “such interest” for “the interest”. 1994—Subsec. (b). Pub. L. 103–394 inserted “the trustee may not avoid under subsection (a) of this section” after “involuntary case,”. 1986—Subsec. (b). Pub. L. 99–554 substituted “made” for “that occurs”, and “to the extent” for “is valid against the trustee to the extent of”, and inserted “is” before “given”. 1984—Subsec. (a). Pub. L. 98–353, § 464(a)(1), (2), substituted “(b) or (c)” for “(b) and (c)” in provisions preceding par. (1) and inserted “only” between “authorized” and “under” in par. (2)(A). In the original of Pub. L. 98–353, subsec. (a)(2) of section 464 thereof ended with a period but was followed by pars. (3), (4), and (5). Such pars. (3), (4), and (5) purported to amend subsec. (a) of this section in ways not susceptible of execution. In a predecessor bill [S. 445], these pars. (3), (4), and (5) formed a part of a subsec. (b) of section 361 thereof which amended subsec. (b) of this section. Such subsec. (b) of section 361 of S. 445 was not carried into Pub. L. 98–353, § 464. Subsec. (c). Pub. L. 98–353, § 464(c), amended subsec. (c) generally. Prior to amendment, subsec. (c) read as follows: “The trustee may not avoid under subsection (a) of this section a transfer, to a good faith purchaser without knowledge of the commencement of the case and for present fair equivalent value or to a purchaser at a judicial sale, of real property located other than in the county in which the case is commenced, unless a copy of the petition was filed in the office where conveyances of real property in such county are recorded before such transfer was so far perfected that a bona fide purchaser of such property against whom applicable law permits such transfer to be perfected cannot acquire an interest that is superior to the interest of such good faith or judicial sale purchaser. A good faith purchaser, without knowledge of the commencement of the case and for less than present fair equivalent value, of real property located other than in the county in which the case is commenced, under a transfer that the trustee may avoid under this section, has a lien on the property transferred to the extent of any present value given, unless a copy of the petition was so filed before such transfer was so perfected.” Subsec. (d)(1). Pub. L. 98–353, § 464(d), substituted “or” for “and”.
|
||||
|
||||
Statutory Notes and Related Subsidiaries
|
||||
|
||||
Effective Date of 2005 AmendmentAmendment by Pub. L. 109–8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of this title.
|
||||
|
||||
Effective Date of 1994 AmendmentAmendment by Pub. L. 103–394 effective Oct. 22, 1994, and not applicable with respect to cases commenced under this title before Oct. 22, 1994, see section 702 of Pub. L. 103–394, set out as a note under section 101 of this title.
|
||||
|
||||
Effective Date of 1986 AmendmentAmendment by Pub. L. 99–554 effective 30 days after Oct. 27, 1986, see section 302(a) of Pub. L. 99–554, set out as a note under section 581 of Title 28, Judiciary and Judicial Procedure.
|
||||
|
||||
Effective Date of 1984 AmendmentAmendment by Pub. L. 98–353 effective with respect to cases filed 90 days after July 10, 1984, see section 552(a) of Pub. L. 98–353, set out as a note under section 101 of this title.
|
||||
@@ -0,0 +1,97 @@
|
||||
---
|
||||
type: "LegalText"
|
||||
title: "11 U.S.C. § 550"
|
||||
description: "Liability of transferee of avoided transfer"
|
||||
jurisdiction: "us"
|
||||
corpus: "united_states_code"
|
||||
kind: "code_section"
|
||||
title_number: 11
|
||||
title_name: "BANKRUPTCY"
|
||||
chapter_number: "5"
|
||||
chapter_name: "CREDITORS, THE DEBTOR, AND THE ESTATE"
|
||||
section: "550"
|
||||
citation: "11 U.S.C. § 550"
|
||||
status: "current"
|
||||
release_point: "119-100"
|
||||
release_date: "2026-06-26"
|
||||
source: "official"
|
||||
source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc11@119-100.zip"
|
||||
source_identifier: "/us/usc/t11/s550"
|
||||
source_file: "data/legal/raw/us/code/title-11/usc11.xml"
|
||||
source_hash: "4b1c5cdd7f6b40e4d694ac64f14fec17f0899a48feaff62a5f3158447038b441"
|
||||
raw_snapshot_hash: "49b32bf784de01de21874d64b5d1d78d1d245352824a03caa6d6b941a4a2c9a2"
|
||||
text_hash: "2599ad6f6cf8d51d36a392b4968d17ab39121d0e44a76c9c3bdc16ac05fefd0e"
|
||||
retrieved_at: "2026-07-04"
|
||||
confidence: "official"
|
||||
tags: ["legal", "us-code"]
|
||||
---
|
||||
|
||||
# 11 U.S.C. § 550 - Liability of transferee of avoided transfer
|
||||
|
||||
## Text
|
||||
|
||||
(a) Except as otherwise provided in this section, to the extent that a transfer is avoided under section 544, 545, 547, 548, 549, 553(b), or 724(a) of this title, the trustee may recover, for the benefit of the estate, the property transferred, or, if the court so orders, the value of such property, from—
|
||||
|
||||
(1) the initial transferee of such transfer or the entity for whose benefit such transfer was made; or
|
||||
|
||||
(2) any immediate or mediate transferee of such initial transferee.
|
||||
|
||||
(b) The trustee may not recover under section 11 So in original. Probably should be “subsection”. (a)(2) of this section from—
|
||||
|
||||
(1) a transferee that takes for value, including satisfaction or securing of a present or antecedent debt, in good faith, and without knowledge of the voidability of the transfer avoided; or
|
||||
|
||||
(2) any immediate or mediate good faith transferee of such transferee.
|
||||
|
||||
(c) If a transfer made between 90 days and one year before the filing of the petition—
|
||||
|
||||
(1) is avoided under section 547(b) of this title; and
|
||||
|
||||
(2) was made for the benefit of a creditor that at the time of such transfer was an insider;
|
||||
|
||||
the trustee may not recover under subsection (a) from a transferee that is not an insider.
|
||||
|
||||
(d) The trustee is entitled to only a single satisfaction under subsection (a) of this section.
|
||||
|
||||
(e) (1) A good faith transferee from whom the trustee may recover under subsection (a) of this section has a lien on the property recovered to secure the lesser of—
|
||||
|
||||
(A) the cost, to such transferee, of any improvement made after the transfer, less the amount of any profit realized by or accruing to such transferee from such property; and
|
||||
|
||||
(B) any increase in the value of such property as a result of such improvement, of the property transferred.
|
||||
|
||||
(2) In this subsection, “improvement” includes—
|
||||
|
||||
(A) physical additions or changes to the property transferred;
|
||||
|
||||
(B) repairs to such property;
|
||||
|
||||
(C) payment of any tax on such property;
|
||||
|
||||
(D) payment of any debt secured by a lien on such property that is superior or equal to the rights of the trustee; and
|
||||
|
||||
(E) preservation of such property.
|
||||
|
||||
(f) An action or proceeding under this section may not be commenced after the earlier of—
|
||||
|
||||
(1) one year after the avoidance of the transfer on account of which recovery under this section is sought; or
|
||||
|
||||
(2) the time the case is closed or dismissed.
|
||||
|
||||
(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2601; Pub. L. 98–353, title III, § 465, July 10, 1984, 98 Stat. 379; Pub. L. 103–394, title II, § 202, Oct. 22, 1994, 108 Stat. 4121.)
|
||||
|
||||
## Notes
|
||||
|
||||
Historical and Revision Notes
|
||||
|
||||
legislative statementsSection 550(a)(1) of the House amendment has been modified in order to permit recovery from an entity for whose benefit an avoided transfer is made in addition to a recovery from the initial transferee of the transfer. Section 550(c) would still apply, and the trustee is entitled only to a single satisfaction. The liability of a transferee under section 550(a) applies only “to the extent that a transfer is avoided”. This means that liability is not imposed on a transferee to the extent that a transferee is protected under a provision such as section 548(c) which grants a good faith transferee for value of a transfer that is avoided only as a fraudulent transfer, a lien on the property transferred to the extent of value given. Section 550(b) of the House amendment is modified to indicate that value includes satisfaction or securing of a present antecedent debt. This means that the trustee may not recover under subsection (a)(2) from a subsequent transferee that takes for “value”, provided the subsequent transferee also takes in good faith and without knowledge of the transfer avoided. Section 550(e) of the House amendment is derived from section 550(e) of the Senate amendment.
|
||||
|
||||
senate report no. 95–989Section 550 prescribes the liability of a transferee of an avoided transfer, and enunciates the separation between the concepts of avoiding a transfer and recovering from the transferee. Subsection (a) permits the trustee to recover from the initial transferee of an avoided transfer or from any immediate or mediate transferee of the initial transferee. The words “to the extent that” in the lead in to this subsection are designed to incorporate the protection of transferees found in proposed 11 U.S.C. 549(b) and 548(c). Subsection (b) limits the liability of an immediate or mediate transferee of the initial transferee if such secondary transferee takes for value, in good faith and without knowledge of the voidability of the transfer. An immediate or mediate good faith transferee of a protected secondary transferee is also shielded from liability. This subsection is limited to the trustee’s right to recover from subsequent transferees under subsection (a)(2). It does not limit the trustee’s rights against the initial transferee under subsection (a)(1). The phrase “good faith” in this paragraph is intended to prevent a transferee from whom the trustee could recover from transferring the recoverable property to an innocent transferee, and receiving a retransfer from him, that is, “washing” the transaction through an innocent third party. In order for the transferee to be excepted from liability under this paragraph, he himself must be a good faith transferee. Subsection (c) is a further limitation on recovery. It specifies that the trustee is entitled to only one satisfactory, under subsection (a), even if more than one transferee is liable. Subsection (d) protects good faith transferees, either initial or subsequent, to the extent of the lesser of the cost of any improvement the transferee makes in the transferred property and the increase in value of the property as a result of the improvement. Paragraph (2) of the subsection defines improvement to include physical additions or changes to the property, repairs, payment of taxes on the property, payment of a debt secured by a lien on the property, discharge of a lien on the property, and preservation of the property. Subsection (e) establishes a statute of limitations on avoidance by the Trustee. The limitation is one year after the avoidance of the transfer or the time the case is closed or dismissed, whichever is earlier.
|
||||
|
||||
Editorial Notes
|
||||
|
||||
Amendments1994—Subsecs. (c) to (f). Pub. L. 103–394 added subsec. (c) and redesignated former subsecs. (c) to (e) as (d) to (f), respectively. 1984—Subsec. (a). Pub. L. 98–353, § 465(a), substituted “549, 553(b), or 724(a) of this title” for “549, or 724(a) of this title”. Subsec. (d)(1)(A). Pub. L. 98–353, § 465(b)(1), inserted “or accruing to” after “by”. Subsec. (d)(1)(B). Pub. L. 98–353, § 465(b)(2), substituted “the value of such property” for “value”. Subsec. (d)(2)(D). Pub. L. 98–353, § 465(b)(3), substituted “payment of any debt secured by a lien on such property that is superior or equal to the rights of the trustee; and” for “payment of any debt secured by a lien on such property.” Subsec. (d)(2)(E), (F). Pub. L. 98–353, § 465(b)(3), (4), struck out subpar. (E) “discharge of any lien against such property that is superior or equal to the rights of the trustee; and” and redesignated subpar. (F) as (E). Subsec. (e)(1). Pub. L. 98–353, § 465(c), substituted “or” for “and”.
|
||||
|
||||
Statutory Notes and Related Subsidiaries
|
||||
|
||||
Effective Date of 1994 AmendmentAmendment by Pub. L. 103–394 effective Oct. 22, 1994, and not applicable with respect to cases commenced under this title before Oct. 22, 1994, see section 702 of Pub. L. 103–394, set out as a note under section 101 of this title.
|
||||
|
||||
Effective Date of 1984 AmendmentAmendment by Pub. L. 98–353 effective with respect to cases filed 90 days after July 10, 1984, see section 552(a) of Pub. L. 98–353, set out as a note under section 101 of this title.
|
||||
@@ -0,0 +1,43 @@
|
||||
---
|
||||
type: "LegalText"
|
||||
title: "11 U.S.C. § 551"
|
||||
description: "Automatic preservation of avoided transfer"
|
||||
jurisdiction: "us"
|
||||
corpus: "united_states_code"
|
||||
kind: "code_section"
|
||||
title_number: 11
|
||||
title_name: "BANKRUPTCY"
|
||||
chapter_number: "5"
|
||||
chapter_name: "CREDITORS, THE DEBTOR, AND THE ESTATE"
|
||||
section: "551"
|
||||
citation: "11 U.S.C. § 551"
|
||||
status: "current"
|
||||
release_point: "119-100"
|
||||
release_date: "2026-06-26"
|
||||
source: "official"
|
||||
source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc11@119-100.zip"
|
||||
source_identifier: "/us/usc/t11/s551"
|
||||
source_file: "data/legal/raw/us/code/title-11/usc11.xml"
|
||||
source_hash: "640a9fda95bc69f956b99d724c0697fdf0cefd09c95be71844ec5ad36f5b0fcd"
|
||||
raw_snapshot_hash: "49b32bf784de01de21874d64b5d1d78d1d245352824a03caa6d6b941a4a2c9a2"
|
||||
text_hash: "b84d411c4fc740368f577ec9deedec85fc750c232c57057db726110696be91c1"
|
||||
retrieved_at: "2026-07-04"
|
||||
confidence: "official"
|
||||
tags: ["legal", "us-code"]
|
||||
---
|
||||
|
||||
# 11 U.S.C. § 551 - Automatic preservation of avoided transfer
|
||||
|
||||
## Text
|
||||
|
||||
Any transfer avoided under section 522, 544, 545, 547, 548, 549, or 724(a) of this title, or any lien void under section 506(d) of this title, is preserved for the benefit of the estate but only with respect to property of the estate.
|
||||
|
||||
(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2602.)
|
||||
|
||||
## Notes
|
||||
|
||||
Historical and Revision Notes
|
||||
|
||||
legislative statementsSection 551 is adopted from the House bill and the alternative in the Senate amendment is rejected. The section is clarified to indicate that a transfer avoided or a lien that is void is preserved for the benefit of the estate, but only with respect to property of the estate. This prevents the trustee from asserting an avoided tax lien against after acquired property of the debtor.
|
||||
|
||||
senate report no. 95–989This section is a change from present law. It specifies that any avoided transfer is automatically preserved for the benefit of the estate. Under current law, the court must determine whether or not the transfer should be preserved. The operation of the section is automatic, unlike current law, even though preservation may not benefit the estate in every instance. A preserved lien may be abandoned by the trustee under proposed 11 U.S.C. 554 if the preservation does not benefit the estate. The section as a whole prevents junior lienors from improving their position at the expense of the estate when a senior lien is avoided.
|
||||
@@ -0,0 +1,61 @@
|
||||
---
|
||||
type: "LegalText"
|
||||
title: "11 U.S.C. § 552"
|
||||
description: "Postpetition effect of security interest"
|
||||
jurisdiction: "us"
|
||||
corpus: "united_states_code"
|
||||
kind: "code_section"
|
||||
title_number: 11
|
||||
title_name: "BANKRUPTCY"
|
||||
chapter_number: "5"
|
||||
chapter_name: "CREDITORS, THE DEBTOR, AND THE ESTATE"
|
||||
section: "552"
|
||||
citation: "11 U.S.C. § 552"
|
||||
status: "current"
|
||||
release_point: "119-100"
|
||||
release_date: "2026-06-26"
|
||||
source: "official"
|
||||
source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc11@119-100.zip"
|
||||
source_identifier: "/us/usc/t11/s552"
|
||||
source_file: "data/legal/raw/us/code/title-11/usc11.xml"
|
||||
source_hash: "30c12806d228f728569cd32b67396056fb52b827f1ab7ed88aff0b856b64587f"
|
||||
raw_snapshot_hash: "49b32bf784de01de21874d64b5d1d78d1d245352824a03caa6d6b941a4a2c9a2"
|
||||
text_hash: "ecc82f8f1e8d6641a920f480e9e2247f1c798d88762c8cec10676d44ad279d94"
|
||||
retrieved_at: "2026-07-04"
|
||||
confidence: "official"
|
||||
tags: ["legal", "us-code"]
|
||||
---
|
||||
|
||||
# 11 U.S.C. § 552 - Postpetition effect of security interest
|
||||
|
||||
## Text
|
||||
|
||||
(a) Except as provided in subsection (b) of this section, property acquired by the estate or by the debtor after the commencement of the case is not subject to any lien resulting from any security agreement entered into by the debtor before the commencement of the case.
|
||||
|
||||
(b) (1) Except as provided in sections 363, 506(c), 522, 544, 545, 547, and 548 of this title, if the debtor and an entity entered into a security agreement before the commencement of the case and if the security interest created by such security agreement extends to property of the debtor acquired before the commencement of the case and to proceeds, products, offspring, or profits of such property, then such security interest extends to such proceeds, products, offspring, or profits acquired by the estate after the commencement of the case to the extent provided by such security agreement and by applicable nonbankruptcy law, except to any extent that the court, after notice and a hearing and based on the equities of the case, orders otherwise.
|
||||
|
||||
(2) Except as provided in sections 363, 506(c), 522, 544, 545, 547, and 548 of this title, and notwithstanding section 546(b) of this title, if the debtor and an entity entered into a security agreement before the commencement of the case and if the security interest created by such security agreement extends to property of the debtor acquired before the commencement of the case and to amounts paid as rents of such property or the fees, charges, accounts, or other payments for the use or occupancy of rooms and other public facilities in hotels, motels, or other lodging properties, then such security interest extends to such rents and such fees, charges, accounts, or other payments acquired by the estate after the commencement of the case to the extent provided in such security agreement, except to any extent that the court, after notice and a hearing and based on the equities of the case, orders otherwise.
|
||||
|
||||
(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2602; Pub. L. 98–353, title III, § 466, July 10, 1984, 98 Stat. 380; Pub. L. 103–394, title II, § 214(a), Oct. 22, 1994, 108 Stat. 4126; Pub. L. 109–8, title XII, § 1204(2), Apr. 20, 2005, 119 Stat. 194.)
|
||||
|
||||
## Notes
|
||||
|
||||
Historical and Revision Notes
|
||||
|
||||
legislative statementsSection 552(a) is derived from the House bill and the alternative provision in the Senate amendment is rejected. Section 552(b) represents a compromise between the House bill and the Senate amendment. Proceeds coverage, but not after acquired property clauses, are valid under title 11. The provision allows the court to consider the equities in each case. In the course of such consideration the court may evaluate any expenditures by the estate relating to proceeds and any related improvement in position of the secured party. Although this section grants a secured party a security interest in proceeds, product, offspring, rents, or profits, the section is explicitly subject to other sections of title 11. For example, the trustee or debtor in possession may use, sell, or lease proceeds, product, offspring, rents or profits under section 363.
|
||||
|
||||
senate report no. 95–989Under the Uniform Commercial Code, article 9, creditors may take security interests in after-acquired property. Section 552 governs the effect of such a prepetition security interest in postpetition property. It applies to all security interests as defined in section 101(37) of the bankruptcy code, not only to U.C.C. security interests. As a general rule, if a security agreement is entered into before the commencement of the case, then property that the estate acquires is not subject to the security interest created by a provision in the security agreement extending the security interest to after-acquired property. Subsection (b) provides an important exception consistent with the Uniform Commercial Code. If the security agreement extends to proceeds, product, offspring, rents, or profits of the property in question, then the proceeds would continue to be subject to the security interest pursuant to the terms of the security agreement and provisions of applicable law, except to the extent that where the estate acquires the proceeds at the expense of other creditors holding unsecured claims, the expenditure resulted in an improvement in the position of the secured party. The exception covers the situation where raw materials, for example, are converted into inventory, or inventory into accounts, at some expense to the estate, thus depleting the fund available for general unsecured creditors, but is limited to the benefit inuring to the secured party thereby. Situations in which the estate incurs expense in simply protecting collateral are governed by 11 U.S.C. 506(c). In ordinary circumstances, the risk of loss in continued operations will remain with the estate.
|
||||
|
||||
house report no. 95–595Under the Uniform Commercial Code, Article 9, creditors may take security interests in after-acquired property. This section governs the effect of such a prepetition security interest in postpetition property. It applies to all security interests as defined in section 101 of the bankruptcy code, not only to U.C.C. security interests. As a general rule, if a security agreement is entered into before the case, then property that the estate acquires is not subject to the security interest created by the security agreement. Subsection (b) provides the only exception. If the security agreement extends to proceeds, product, offspring, rents, or profits of property that the debtor had before the commencement of the case, then the proceeds, etc., continue to be subject to the security interest, except to the extent that the estate acquired the proceeds to the prejudice of other creditors holding unsecured claims. “Extends to” as used here would include an automatically arising security interest in proceeds, as permitted under the 1972 version of the Uniform Commercial Code, as well as an interest in proceeds specifically designated, as required under the 1962 Code or similar statutes covering property not covered by the Code. “Prejudice” is not intended to be a broad term here, but is designed to cover the situation where the estate expends funds that result in an increase in the value of collateral. The exception is to cover the situation where raw materials, for example, are converted into inventory, or inventory into accounts, at some expense to the estate, thus depleting the fund available for general unsecured creditors. The term “proceeds” is not limited to the technical definition of that term in the U.C.C., but covers any property into which property subject to the security interest is converted.
|
||||
|
||||
Editorial Notes
|
||||
|
||||
Amendments2005—Subsec. (b)(1). Pub. L. 109–8 substituted “products” for “product” in two places. 1994—Subsec. (b). Pub. L. 103–394 designated existing provisions as par. (1), struck out “rents,” after “offspring,” in two places, and added par. (2). 1984—Subsec. (b). Pub. L. 98–353 inserted “522,” after “506(c),”, substituted “an entity entered” for “a secured party enter”, and substituted “except to any extent” for “except to the extent”.
|
||||
|
||||
Statutory Notes and Related Subsidiaries
|
||||
|
||||
Effective Date of 2005 AmendmentAmendment by Pub. L. 109–8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of this title.
|
||||
|
||||
Effective Date of 1994 AmendmentAmendment by Pub. L. 103–394 effective Oct. 22, 1994, and not applicable with respect to cases commenced under this title before Oct. 22, 1994, see section 702 of Pub. L. 103–394, set out as a note under section 101 of this title.
|
||||
|
||||
Effective Date of 1984 AmendmentAmendment by Pub. L. 98–353 effective with respect to cases filed 90 days after July 10, 1984, see section 552(a) of Pub. L. 98–353, set out as a note under section 101 of this title.
|
||||
@@ -0,0 +1,83 @@
|
||||
---
|
||||
type: "LegalText"
|
||||
title: "11 U.S.C. § 553"
|
||||
description: "Setoff"
|
||||
jurisdiction: "us"
|
||||
corpus: "united_states_code"
|
||||
kind: "code_section"
|
||||
title_number: 11
|
||||
title_name: "BANKRUPTCY"
|
||||
chapter_number: "5"
|
||||
chapter_name: "CREDITORS, THE DEBTOR, AND THE ESTATE"
|
||||
section: "553"
|
||||
citation: "11 U.S.C. § 553"
|
||||
status: "current"
|
||||
release_point: "119-100"
|
||||
release_date: "2026-06-26"
|
||||
source: "official"
|
||||
source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc11@119-100.zip"
|
||||
source_identifier: "/us/usc/t11/s553"
|
||||
source_file: "data/legal/raw/us/code/title-11/usc11.xml"
|
||||
source_hash: "4047a35c1fce7a7f5acc36d7285679a6fdc754db97c5ddc0e3824160a0c184cb"
|
||||
raw_snapshot_hash: "49b32bf784de01de21874d64b5d1d78d1d245352824a03caa6d6b941a4a2c9a2"
|
||||
text_hash: "33dae4a42b494fdede2693292fb5c569db76b396d329cc0962da7e52f6571688"
|
||||
retrieved_at: "2026-07-04"
|
||||
confidence: "official"
|
||||
tags: ["legal", "us-code"]
|
||||
---
|
||||
|
||||
# 11 U.S.C. § 553 - Setoff
|
||||
|
||||
## Text
|
||||
|
||||
(a) Except as otherwise provided in this section and in sections 362 and 363 of this title, this title does not affect any right of a creditor to offset a mutual debt owing by such creditor to the debtor that arose before the commencement of the case under this title against a claim of such creditor against the debtor that arose before the commencement of the case, except to the extent that—
|
||||
|
||||
(1) the claim of such creditor against the debtor is disallowed;
|
||||
|
||||
(2) such claim was transferred, by an entity other than the debtor, to such creditor—
|
||||
|
||||
(A) after the commencement of the case; or
|
||||
|
||||
(B) (i) after 90 days before the date of the filing of the petition; and
|
||||
|
||||
(ii) while the debtor was insolvent (except for a setoff of a kind described in section 362(b)(6), 362(b)(7), 362(b)(17), 362(b)(27), 555, 556, 559, 560, or 561); or
|
||||
|
||||
(3) the debt owed to the debtor by such creditor was incurred by such creditor—
|
||||
|
||||
(A) after 90 days before the date of the filing of the petition;
|
||||
|
||||
(B) while the debtor was insolvent; and
|
||||
|
||||
(C) for the purpose of obtaining a right of setoff against the debtor (except for a setoff of a kind described in section 362(b)(6), 362(b)(7), 362(b)(17), 362(b)(27), 555, 556, 559, 560, or 561).
|
||||
|
||||
(b) (1) Except with respect to a setoff of a kind described in section 362(b)(6), 362(b)(7), 362(b)(17), 362(b)(27), 555, 556, 559, 560, 561, 365(h), 546(h), or 365(i)(2) of this title, if a creditor offsets a mutual debt owing to the debtor against a claim against the debtor on or within 90 days before the date of the filing of the petition, then the trustee may recover from such creditor the amount so offset to the extent that any insufficiency on the date of such setoff is less than the insufficiency on the later of—
|
||||
|
||||
(A) 90 days before the date of the filing of the petition; and
|
||||
|
||||
(B) the first date during the 90 days immediately preceding the date of the filing of the petition on which there is an insufficiency.
|
||||
|
||||
(2) In this subsection, “insufficiency” means amount, if any, by which a claim against the debtor exceeds a mutual debt owing to the debtor by the holder of such claim.
|
||||
|
||||
(c) For the purposes of this section, the debtor is presumed to have been insolvent on and during the 90 days immediately preceding the date of the filing of the petition.
|
||||
|
||||
(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2602; Pub. L. 98–353, title III, §§ 395, 467, July 10, 1984, 98 Stat. 365, 380; Pub. L. 101–311, title I, § 105, June 25, 1990, 104 Stat. 268; Pub. L. 103–394, title II, §§ 205(b), 222(b), title V, § 501(d)(19), Oct. 22, 1994, 108 Stat. 4123, 4129, 4146; Pub. L. 109–8, title IX, § 907(n), Apr. 20, 2005, 119 Stat. 181.)
|
||||
|
||||
## Notes
|
||||
|
||||
Historical and Revision Notes
|
||||
|
||||
legislative statementsSection 553 of the House amendment is derived from a similar provision contained in the Senate amendment, but is modified to clarify application of a two-point test with respect to setoffs.
|
||||
|
||||
senate report no. 95–989This section preserves, with some changes, the right of setoff in bankruptcy cases now found in section 68 of the Bankruptcy Act [section 108 of former title 11]. One exception to the right is the automatic stay, discussed in connection with proposed 11 U.S.C. 362. Another is the right of the trustee to use property under section 363 that is subject to a right of setoff. The section states that the right of setoff is unaffected by the bankruptcy code except to the extent that the creditor’s claim is disallowed, the creditor acquired (other than from the debtor) the claim during the 90 days preceding the case while the debtor was insolvent, the debt being offset was incurred for the purpose of obtaining a right of setoff, while the debtor was insolvent and during the 90-day prebankruptcy period, or the creditor improved his position in the 90-day period (similar to the improvement in position test found in the preference section 547(c)(5)). Only the last exception is an addition to current law. As under section 547(f), the debtor is presumed to have been insolvent during the 90 days before the case.
|
||||
|
||||
Editorial Notes
|
||||
|
||||
Amendments2005—Subsec. (a)(2)(B)(ii). Pub. L. 109–8, § 907(n)(1), inserted “(except for a setoff of a kind described in section 362(b)(6), 362(b)(7), 362(b)(17), 362(b)(27), 555, 556, 559, 560, or 561)” before semicolon. Subsec. (a)(3)(C). Pub. L. 109–8, § 907(n)(2), inserted “(except for a setoff of a kind described in section 362(b)(6), 362(b)(7), 362(b)(17), 362(b)(27), 555, 556, 559, 560, or 561)” before period. Subsec. (b)(1). Pub. L. 109–8, § 907(n)(3), substituted “362(b)(17), 362(b)(27), 555, 556, 559, 560, 561,” for “362(b)(14),” in introductory provisions. 1994—Subsec. (a)(1). Pub. L. 103–394, § 501(d)(19)(A), struck out before semicolon at end “other than under section 502(b)(3) of this title”. Subsec. (b)(1). Pub. L. 103–394, § 501(d)(19)(B), substituted “section 362(b)(14),” for “section 362(b)(14),,”. Pub. L. 103–394, § 222(b), which directed the amendment of section 553(b)(1) by inserting “546(h),” after “365(h),” was executed by making the insertion in section 553(b)(1) of this title to reflect the probable intent of Congress. Pub. L. 103–394, § 205(b), substituted “365(h)” for “365(h)(2)”. 1990—Subsec. (b)(1). Pub. L. 101–311 substituted “362(b)(7), 362(b)(14),” for “362(b)(7),”. 1984—Subsec. (b)(1). Pub. L. 98–353 inserted “, 362(b)(7),” after “362(b)(6)”, and substituted “, 365(h)(2), or 365(i)(2)” for “or 365(h)(1)”.
|
||||
|
||||
Statutory Notes and Related Subsidiaries
|
||||
|
||||
Effective Date of 2005 AmendmentAmendment by Pub. L. 109–8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of this title.
|
||||
|
||||
Effective Date of 1994 AmendmentAmendment by Pub. L. 103–394 effective Oct. 22, 1994, and not applicable with respect to cases commenced under this title before Oct. 22, 1994, see section 702 of Pub. L. 103–394, set out as a note under section 101 of this title.
|
||||
|
||||
Effective Date of 1984 AmendmentAmendment by Pub. L. 98–353 effective with respect to cases filed 90 days after July 10, 1984, see section 552(a) of Pub. L. 98–353, set out as a note under section 101 of this title.
|
||||
@@ -0,0 +1,59 @@
|
||||
---
|
||||
type: "LegalText"
|
||||
title: "11 U.S.C. § 554"
|
||||
description: "Abandonment of property of the estate"
|
||||
jurisdiction: "us"
|
||||
corpus: "united_states_code"
|
||||
kind: "code_section"
|
||||
title_number: 11
|
||||
title_name: "BANKRUPTCY"
|
||||
chapter_number: "5"
|
||||
chapter_name: "CREDITORS, THE DEBTOR, AND THE ESTATE"
|
||||
section: "554"
|
||||
citation: "11 U.S.C. § 554"
|
||||
status: "current"
|
||||
release_point: "119-100"
|
||||
release_date: "2026-06-26"
|
||||
source: "official"
|
||||
source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc11@119-100.zip"
|
||||
source_identifier: "/us/usc/t11/s554"
|
||||
source_file: "data/legal/raw/us/code/title-11/usc11.xml"
|
||||
source_hash: "4ed6d2720dec33b66521aa336f83f2ac352ee998521beb7d978eabd7061c7603"
|
||||
raw_snapshot_hash: "49b32bf784de01de21874d64b5d1d78d1d245352824a03caa6d6b941a4a2c9a2"
|
||||
text_hash: "d20357723d64b5dc7142252e23382b7db9d35e39ad9ce0367396a2ab426133b4"
|
||||
retrieved_at: "2026-07-04"
|
||||
confidence: "official"
|
||||
tags: ["legal", "us-code"]
|
||||
---
|
||||
|
||||
# 11 U.S.C. § 554 - Abandonment of property of the estate
|
||||
|
||||
## Text
|
||||
|
||||
(a) After notice and a hearing, the trustee may abandon any property of the estate that is burdensome to the estate or that is of inconsequential value and benefit to the estate.
|
||||
|
||||
(b) On request of a party in interest and after notice and a hearing, the court may order the trustee to abandon any property of the estate that is burdensome to the estate or that is of inconsequential value and benefit to the estate.
|
||||
|
||||
(c) Unless the court orders otherwise, any property scheduled under section 521(a)(1) of this title not otherwise administered at the time of the closing of a case is abandoned to the debtor and administered for purposes of section 350 of this title.
|
||||
|
||||
(d) Unless the court orders otherwise, property of the estate that is not abandoned under this section and that is not administered in the case remains property of the estate.
|
||||
|
||||
(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2603; Pub. L. 98–353, title III, § 468, July 10, 1984, 98 Stat. 380; Pub. L. 99–554, title II, § 283(p), Oct. 27, 1986, 100 Stat. 3118; Pub. L. 111–327, § 2(a)(23), Dec. 22, 2010, 124 Stat. 3560.)
|
||||
|
||||
## Notes
|
||||
|
||||
Historical and Revision Notes
|
||||
|
||||
legislative statementsSection 554(b) is new and permits a party in interest to request the court to order the trustee to abandon property of the estate that is burdensome to the estate or that is of inconsequential value to the estate.
|
||||
|
||||
senate report no. 95–989Under this section the court may authorize the trustee to abandon any property of the estate that is burdensome to the estate or that is of inconsequential value to the estate. Abandonment may be to any party with a possessory interest in the property abandoned. In order to aid administration of the case, subsection (b) deems the court to have authorized abandonment of any property that is scheduled under section 521(1) and that is not administered before the case is closed. That property is deemed abandoned to the debtor. Subsection (c) specifies that if property is neither abandoned nor administered it remains property of the estate.
|
||||
|
||||
Editorial Notes
|
||||
|
||||
Amendments2010—Subsec. (c). Pub. L. 111–327 substituted “521(a)(1)” for “521(1)”. 1986—Subsec. (c). Pub. L. 99–554 substituted “521(1)” for “521(a)(1)”. 1984—Subsecs. (a), (b). Pub. L. 98–353, § 468(a), inserted “and benefit” after “value”. Subsec. (c). Pub. L. 98–353, § 468(b), amended subsec. (c) generally. Prior to amendment, subsec. (c) read as follows: “Unless the court orders otherwise, any property that is scheduled under section 521(1) of this title and that is not administered before a case is closed under section 350 of this title is deemed abandoned.” Subsec. (d). Pub. L. 98–353, § 468(c), struck out “section (a) or (b) of” after “not abandoned under”.
|
||||
|
||||
Statutory Notes and Related Subsidiaries
|
||||
|
||||
Effective Date of 1986 AmendmentAmendment by Pub. L. 99–554 effective 30 days after Oct. 27, 1986, see section 302(a) of Pub. L. 99–554, set out as a note under section 581 of Title 28, Judiciary and Judicial Procedure.
|
||||
|
||||
Effective Date of 1984 AmendmentAmendment by Pub. L. 98–353 effective with respect to cases filed 90 days after July 10, 1984, see section 552(a) of Pub. L. 98–353, set out as a note under section 101 of this title.
|
||||
@@ -0,0 +1,51 @@
|
||||
---
|
||||
type: "LegalText"
|
||||
title: "11 U.S.C. § 555"
|
||||
description: "Contractual right to liquidate, terminate, or accelerate a securities contract"
|
||||
jurisdiction: "us"
|
||||
corpus: "united_states_code"
|
||||
kind: "code_section"
|
||||
title_number: 11
|
||||
title_name: "BANKRUPTCY"
|
||||
chapter_number: "5"
|
||||
chapter_name: "CREDITORS, THE DEBTOR, AND THE ESTATE"
|
||||
section: "555"
|
||||
citation: "11 U.S.C. § 555"
|
||||
status: "current"
|
||||
release_point: "119-100"
|
||||
release_date: "2026-06-26"
|
||||
source: "official"
|
||||
source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc11@119-100.zip"
|
||||
source_identifier: "/us/usc/t11/s555"
|
||||
source_file: "data/legal/raw/us/code/title-11/usc11.xml"
|
||||
source_hash: "47a56503d06623d09eb3189723674ee284e35a85c356754a088184bf0477e6a8"
|
||||
raw_snapshot_hash: "49b32bf784de01de21874d64b5d1d78d1d245352824a03caa6d6b941a4a2c9a2"
|
||||
text_hash: "502644529b9cb4b637903f3f97ec3df49e72a8c90485977d28957f84501ffbdf"
|
||||
retrieved_at: "2026-07-04"
|
||||
confidence: "official"
|
||||
tags: ["legal", "us-code"]
|
||||
---
|
||||
|
||||
# 11 U.S.C. § 555 - Contractual right to liquidate, terminate, or accelerate a securities contract
|
||||
|
||||
## Text
|
||||
|
||||
The exercise of a contractual right of a stockbroker, financial institution, financial participant, or securities clearing agency to cause the liquidation, termination, or acceleration of a securities contract, as defined in section 741 of this title, because of a condition of the kind specified in section 365(e)(1) of this title shall not be stayed, avoided, or otherwise limited by operation of any provision of this title or by order of a court or administrative agency in any proceeding under this title unless such order is authorized under the provisions of the Securities Investor Protection Act of 1970 or any statute administered by the Securities and Exchange Commission. As used in this section, the term “contractual right” includes a right set forth in a rule or bylaw of a derivatives clearing organization (as defined in the Commodity Exchange Act), a multilateral clearing organization (as defined in the Federal Deposit Insurance Corporation Improvement Act of 1991), a national securities exchange, a national securities association, a securities clearing agency, a contract market designated under the Commodity Exchange Act, a derivatives transaction execution facility registered under the Commodity Exchange Act, or a board of trade (as defined in the Commodity Exchange Act), or in a resolution of the governing board thereof, and a right, whether or not in writing, arising under common law, under law merchant, or by reason of normal business practice.
|
||||
|
||||
(Added Pub. L. 97–222, § 6(a), July 27, 1982, 96 Stat. 236; amended Pub. L. 98–353, title III, § 469, July 10, 1984, 98 Stat. 380; Pub. L. 103–394, title V, § 501(b)(6), (d)(20), Oct. 22, 1994, 108 Stat. 4143, 4146; Pub. L. 109–8, title IX, § 907(g), (o)(7), Apr. 20, 2005, 119 Stat. 177, 182.)
|
||||
|
||||
## Notes
|
||||
|
||||
Editorial Notes
|
||||
|
||||
References in TextThe Securities Investor Protection Act of 1970, referred to in text, is Pub. L. 91–598, Dec. 30, 1970, 84 Stat. 1636, as amended, which is classified generally to chapter 2B–1 (§ 78aaa et seq.) of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see section 78aaa of Title 15 and Tables. The Commodity Exchange Act, referred to in text, is act Sept. 21, 1922, ch. 369, 42 Stat. 998, as amended, which is classified generally to chapter 1 (§ 1 et seq.) of Title 7, Agriculture. For complete classification of this Act to the Code, see section 1 of Title 7 and Tables. The Federal Deposit Insurance Corporation Improvement Act of 1991, referred to in text, is Pub. L. 102–242, Dec. 19, 1991, 105 Stat. 2236, as amended. For complete classification of this Act to the Code, see Short Title of 1991 Amendment note set out under section 1811 of Title 12, Banks and Banking, and Tables.
|
||||
|
||||
Amendments2005—Pub. L. 109–8, § 907(g)(1), substituted “Contractual right to liquidate, terminate, or accelerate a securities contract” for “Contractual right to liquidate a securities contract” in section catchline. Pub. L. 109–8, § 907(g)(2), (o)(7), in first sentence, inserted “financial participant,” after “financial institution,” and substituted “liquidation, termination, or acceleration” for “liquidation”, and substituted second sentence for former second sentence which read as follows: “As used in this section, the term ‘contractual right’ includes a right set forth in a rule or bylaw of a national securities exchange, a national securities association, or a securities clearing agency.” 1994—Pub. L. 103–394 substituted “section 741 of this title” for “section 741(7)” and struck out “(15 U.S.C. 78aaa et seq.)” after “Act of 1970”. 1984—Pub. L. 98–353 inserted “, financial institution,” after “stockbroker”.
|
||||
|
||||
Statutory Notes and Related Subsidiaries
|
||||
|
||||
Effective Date of 2005 AmendmentAmendment by Pub. L. 109–8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of this title.
|
||||
|
||||
Effective Date of 1994 AmendmentAmendment by Pub. L. 103–394 effective Oct. 22, 1994, and not applicable with respect to cases commenced under this title before Oct. 22, 1994, see section 702 of Pub. L. 103–394, set out as a note under section 101 of this title.
|
||||
|
||||
Effective Date of 1984 AmendmentAmendment by Pub. L. 98–353 effective with respect to cases filed 90 days after July 10, 1984, see section 552(a) of Pub. L. 98–353, set out as a note under section 101 of this title.
|
||||
@@ -0,0 +1,49 @@
|
||||
---
|
||||
type: "LegalText"
|
||||
title: "11 U.S.C. § 556"
|
||||
description: "Contractual right to liquidate, terminate, or accelerate a commodities contract or forward contract"
|
||||
jurisdiction: "us"
|
||||
corpus: "united_states_code"
|
||||
kind: "code_section"
|
||||
title_number: 11
|
||||
title_name: "BANKRUPTCY"
|
||||
chapter_number: "5"
|
||||
chapter_name: "CREDITORS, THE DEBTOR, AND THE ESTATE"
|
||||
section: "556"
|
||||
citation: "11 U.S.C. § 556"
|
||||
status: "current"
|
||||
release_point: "119-100"
|
||||
release_date: "2026-06-26"
|
||||
source: "official"
|
||||
source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc11@119-100.zip"
|
||||
source_identifier: "/us/usc/t11/s556"
|
||||
source_file: "data/legal/raw/us/code/title-11/usc11.xml"
|
||||
source_hash: "a86a5a07e365113acad7f432c2b9e8f99f152b0cd22a0418448b1d2c19af4b83"
|
||||
raw_snapshot_hash: "49b32bf784de01de21874d64b5d1d78d1d245352824a03caa6d6b941a4a2c9a2"
|
||||
text_hash: "4ce45e8e9bb8b56f532f336fe03303f13d9fb6cef74daded75c251611f037d17"
|
||||
retrieved_at: "2026-07-04"
|
||||
confidence: "official"
|
||||
tags: ["legal", "us-code"]
|
||||
---
|
||||
|
||||
# 11 U.S.C. § 556 - Contractual right to liquidate, terminate, or accelerate a commodities contract or forward contract
|
||||
|
||||
## Text
|
||||
|
||||
The contractual right of a commodity broker, financial participant, or forward contract merchant to cause the liquidation, termination, or acceleration of a commodity contract, as defined in section 761 of this title, or forward contract because of a condition of the kind specified in section 365(e)(1) of this title, and the right to a variation or maintenance margin payment received from a trustee with respect to open commodity contracts or forward contracts, shall not be stayed, avoided, or otherwise limited by operation of any provision of this title or by the order of a court in any proceeding under this title. As used in this section, the term “contractual right” includes a right set forth in a rule or bylaw of a derivatives clearing organization (as defined in the Commodity Exchange Act), a multilateral clearing organization (as defined in the Federal Deposit Insurance Corporation Improvement Act of 1991), a national securities exchange, a national securities association, a securities clearing agency, a contract market designated under the Commodity Exchange Act, a derivatives transaction execution facility registered under the Commodity Exchange Act, or a board of trade (as defined in the Commodity Exchange Act) or in a resolution of the governing board thereof and a right, whether or not evidenced in writing, arising under common law, under law merchant or by reason of normal business practice.
|
||||
|
||||
(Added Pub. L. 97–222, § 6(a), July 27, 1982, 96 Stat. 236; amended Pub. L. 101–311, title II, § 205, June 25, 1990, 104 Stat. 270; Pub. L. 103–394, title V, § 501(b)(7), Oct. 22, 1994, 108 Stat. 4143; Pub. L. 109–8, title IX, §§ 907(h), (o)(8), Apr. 20, 2005, 119 Stat. 178, 182.)
|
||||
|
||||
## Notes
|
||||
|
||||
Editorial Notes
|
||||
|
||||
References in TextThe Commodity Exchange Act, referred to in text, is act Sept. 21, 1922, ch. 369, 42 Stat. 998, as amended, which is classified generally to chapter 1 (§ 1 et seq.) of Title 7, Agriculture. For complete classification of this Act to the Code, see section 1 of Title 7 and Tables. The Federal Deposit Insurance Corporation Improvement Act of 1991, referred to in text, is Pub. L. 102–242, Dec. 19, 1991, 105 Stat. 2236, as amended. For complete classification of this Act to the Code, see Short Title of 1991 Amendment note set out under section 1811 of Title 12, Banks and Banking, and Tables.
|
||||
|
||||
Amendments2005—Pub. L. 109–8, § 907(o)(8), inserted “, financial participant,” after “commodity broker” in first sentence. Pub. L. 109–8, § 907(h), substituted “Contractual right to liquidate, terminate, or accelerate a commodities contract or forward contract” for “Contractual right to liquidate a commodities contract or forward contract” in section catchline, “liquidation, termination, or acceleration” for “liquidation” in first sentence, and “As used in this section, the term ‘contractual right’ includes a right set forth in a rule or bylaw of a derivatives clearing organization (as defined in the Commodity Exchange Act), a multilateral clearing organization (as defined in the Federal Deposit Insurance Corporation Improvement Act of 1991), a national securities exchange, a national securities association, a securities clearing agency, a contract market designated under the Commodity Exchange Act, a derivatives transaction execution facility registered under the Commodity Exchange Act, or a board of trade (as defined in the Commodity Exchange Act) or in a resolution of the governing board thereof and a right,” for “As used in this section, the term ‘contractual right’ includes a right set forth in a rule or bylaw of a clearing organization or contract market or in a resolution of the governing board thereof and a right,” in second sentence. 1994—Pub. L. 103–394 substituted “section 761 of this title” for “section 761(4)”. 1990—Pub. L. 101–311 inserted before period at end “and a right, whether or not evidenced in writing, arising under common law, under law merchant or by reason of normal business practice”.
|
||||
|
||||
Statutory Notes and Related Subsidiaries
|
||||
|
||||
Effective Date of 2005 AmendmentAmendment by Pub. L. 109–8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of this title.
|
||||
|
||||
Effective Date of 1994 AmendmentAmendment by Pub. L. 103–394 effective Oct. 22, 1994, and not applicable with respect to cases commenced under this title before Oct. 22, 1994, see section 702 of Pub. L. 103–394, set out as a note under section 101 of this title.
|
||||
@@ -0,0 +1,139 @@
|
||||
---
|
||||
type: "LegalText"
|
||||
title: "11 U.S.C. § 557"
|
||||
description: "Expedited determination of interests in, and abandonment or other disposition of grain assets"
|
||||
jurisdiction: "us"
|
||||
corpus: "united_states_code"
|
||||
kind: "code_section"
|
||||
title_number: 11
|
||||
title_name: "BANKRUPTCY"
|
||||
chapter_number: "5"
|
||||
chapter_name: "CREDITORS, THE DEBTOR, AND THE ESTATE"
|
||||
section: "557"
|
||||
citation: "11 U.S.C. § 557"
|
||||
status: "current"
|
||||
release_point: "119-100"
|
||||
release_date: "2026-06-26"
|
||||
source: "official"
|
||||
source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc11@119-100.zip"
|
||||
source_identifier: "/us/usc/t11/s557"
|
||||
source_file: "data/legal/raw/us/code/title-11/usc11.xml"
|
||||
source_hash: "d0807b8bed9af80358701105042306f2b5039a09682488399605194fb2d60680"
|
||||
raw_snapshot_hash: "49b32bf784de01de21874d64b5d1d78d1d245352824a03caa6d6b941a4a2c9a2"
|
||||
text_hash: "eee6503d225214d98c0baaa05de7337368fa6db9557a19893121cd8ecf3d0cf0"
|
||||
retrieved_at: "2026-07-04"
|
||||
confidence: "official"
|
||||
tags: ["legal", "us-code"]
|
||||
---
|
||||
|
||||
# 11 U.S.C. § 557 - Expedited determination of interests in, and abandonment or other disposition of grain assets
|
||||
|
||||
## Text
|
||||
|
||||
(a) This section applies only in a case concerning a debtor that owns or operates a grain storage facility and only with respect to grain and the proceeds of grain. This section does not affect the application of any other section of this title to property other than grain and proceeds of grain.
|
||||
|
||||
(b) In this section—
|
||||
|
||||
(1) “grain” means wheat, corn, flaxseed, grain sorghum, barley, oats, rye, soybeans, other dry edible beans, or rice;
|
||||
|
||||
(2) “grain storage facility” means a site or physical structure regularly used to store grain for producers, or to store grain acquired from producers for resale; and
|
||||
|
||||
(3) “producer” means an entity which engages in the growing of grain.
|
||||
|
||||
(c) (1) Notwithstanding sections 362, 363, 365, and 554 of this title, on the court’s own motion the court may, and on the request of the trustee or an entity that claims an interest in grain or the proceeds of grain the court shall, expedite the procedures for the determination of interests in and the disposition of grain and the proceeds of grain, by shortening to the greatest extent feasible such time periods as are otherwise applicable for such procedures and by establishing, by order, a timetable having a duration of not to exceed 120 days for the completion of the applicable procedure specified in subsection (d) of this section. Such time periods and such timetable may be modified by the court, for cause, in accordance with subsection (f) of this section.
|
||||
|
||||
(2) The court shall determine the extent to which such time periods shall be shortened, based upon—
|
||||
|
||||
(A) any need of an entity claiming an interest in such grain or the proceeds of grain for a prompt determination of such interest;
|
||||
|
||||
(B) any need of such entity for a prompt disposition of such grain;
|
||||
|
||||
(C) the market for such grain;
|
||||
|
||||
(D) the conditions under which such grain is stored;
|
||||
|
||||
(E) the costs of continued storage or disposition of such grain;
|
||||
|
||||
(F) the orderly administration of the estate;
|
||||
|
||||
(G) the appropriate opportunity for an entity to assert an interest in such grain; and
|
||||
|
||||
(H) such other considerations as are relevant to the need to expedite such procedures in the case.
|
||||
|
||||
(d) The procedures that may be expedited under subsection (c) of this section include—
|
||||
|
||||
(1) the filing of and response to—
|
||||
|
||||
(A) a claim of ownership;
|
||||
|
||||
(B) a proof of claim;
|
||||
|
||||
(C) a request for abandonment;
|
||||
|
||||
(D) a request for relief from the stay of action against property under section 362(a) of this title;
|
||||
|
||||
(E) a request for determination of secured status;
|
||||
|
||||
(F) a request for determination of whether such grain or the proceeds of grain—
|
||||
|
||||
(i) is property of the estate;
|
||||
|
||||
(ii) must be turned over to the estate; or
|
||||
|
||||
(iii) may be used, sold, or leased; and
|
||||
|
||||
(G) any other request for determination of an interest in such grain or the proceeds of grain;
|
||||
|
||||
(2) the disposition of such grain or the proceeds of grain, before or after determination of interests in such grain or the proceeds of grain, by way of—
|
||||
|
||||
(A) sale of such grain;
|
||||
|
||||
(B) abandonment;
|
||||
|
||||
(C) distribution; or
|
||||
|
||||
(D) such other method as is equitable in the case;
|
||||
|
||||
(3) subject to sections 701, 702, 703, 1104, 1183, 1202, and 1302 of this title, the appointment of a trustee or examiner and the retention and compensation of any professional person required to assist with respect to matters relevant to the determination of interests in or disposition of such grain or the proceeds of grain; and
|
||||
|
||||
(4) the determination of any dispute concerning a matter specified in paragraph (1), (2), or (3) of this subsection.
|
||||
|
||||
(e) (1) Any governmental unit that has regulatory jurisdiction over the operation or liquidation of the debtor or the debtor’s business shall be given notice of any request made or order entered under subsection (c) of this section.
|
||||
|
||||
(2) Any such governmental unit may raise, and may appear and be heard on, any issue relating to grain or the proceeds of grain in a case in which a request is made, or an order is entered, under subsection (c) of this section.
|
||||
|
||||
(3) The trustee shall consult with such governmental unit before taking any action relating to the disposition of grain in the possession, custody, or control of the debtor or the estate.
|
||||
|
||||
(f) The court may extend the period for final disposition of grain or the proceeds of grain under this section beyond 120 days if the court finds that—
|
||||
|
||||
(1) the interests of justice so require in light of the complexity of the case; and
|
||||
|
||||
(2) the interests of those claimants entitled to distribution of grain or the proceeds of grain will not be materially injured by such additional delay.
|
||||
|
||||
(g) Unless an order establishing an expedited procedure under subsection (c) of this section, or determining any interest in or approving any disposition of grain or the proceeds of grain, is stayed pending appeal—
|
||||
|
||||
(1) the reversal or modification of such order on appeal does not affect the validity of any procedure, determination, or disposition that occurs before such reversal or modification, whether or not any entity knew of the pendency of the appeal; and
|
||||
|
||||
(2) neither the court nor the trustee may delay, due to the appeal of such order, any proceeding in the case in which such order is issued.
|
||||
|
||||
(h) (1) The trustee may recover from grain and the proceeds of grain the reasonable and necessary costs and expenses allowable under section 503(b) of this title attributable to preserving or disposing of grain or the proceeds of grain, but may not recover from such grain or the proceeds of grain any other costs or expenses.
|
||||
|
||||
(2) Notwithstanding section 326(a) of this title, the dollar amounts of money specified in such section include the value, as of the date of disposition, of any grain that the trustee distributes in kind.
|
||||
|
||||
(i) In all cases where the quantity of a specific type of grain held by a debtor operating a grain storage facility exceeds ten thousand bushels, such grain shall be sold by the trustee and the assets thereof distributed in accordance with the provisions of this section.
|
||||
|
||||
(Added Pub. L. 98–353, title III, § 352(a), July 10, 1984, 98 Stat. 359; amended Pub. L. 99–554, title II, § 257(p), Oct. 27, 1986, 100 Stat. 3115; Pub. L. 116–54, § 4(a)(10), Aug. 23, 2019, 133 Stat. 1086.)
|
||||
|
||||
## Notes
|
||||
|
||||
Editorial Notes
|
||||
|
||||
Amendments2019—Subsec. (d)(3). Pub. L. 116–54 inserted “1183,” after “1104,”. 1986—Subsec. (d)(3). Pub. L. 99–554 inserted reference to section 1202 of this title.
|
||||
|
||||
Statutory Notes and Related Subsidiaries
|
||||
|
||||
Effective Date of 2019 AmendmentAmendment by Pub. L. 116–54 effective 180 days after Aug. 23, 2019, see section 5 of Pub. L. 116–54, set out as a note under section 101 of this title.
|
||||
|
||||
Effective Date of 1986 AmendmentAmendment by Pub. L. 99–554 effective 30 days after Oct. 27, 1986, but not applicable to cases commenced under this title before that date, see section 302(a), (c)(1) of Pub. L. 99–554, set out as a note under section 581 of Title 28, Judiciary and Judicial Procedure.
|
||||
|
||||
Effective DateSection effective with respect to cases filed 90 days after July 10, 1984, see section 552(a) of Pub. L. 98–353, set out as an Effective Date of 1984 Amendment note under section 101 of this title.
|
||||
@@ -0,0 +1,41 @@
|
||||
---
|
||||
type: "LegalText"
|
||||
title: "11 U.S.C. § 558"
|
||||
description: "Defenses of the estate"
|
||||
jurisdiction: "us"
|
||||
corpus: "united_states_code"
|
||||
kind: "code_section"
|
||||
title_number: 11
|
||||
title_name: "BANKRUPTCY"
|
||||
chapter_number: "5"
|
||||
chapter_name: "CREDITORS, THE DEBTOR, AND THE ESTATE"
|
||||
section: "558"
|
||||
citation: "11 U.S.C. § 558"
|
||||
status: "current"
|
||||
release_point: "119-100"
|
||||
release_date: "2026-06-26"
|
||||
source: "official"
|
||||
source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc11@119-100.zip"
|
||||
source_identifier: "/us/usc/t11/s558"
|
||||
source_file: "data/legal/raw/us/code/title-11/usc11.xml"
|
||||
source_hash: "7bc63d0fd768b4ead6817d0d75bd4cbdaec58b45643452e606a1371c73758bbe"
|
||||
raw_snapshot_hash: "49b32bf784de01de21874d64b5d1d78d1d245352824a03caa6d6b941a4a2c9a2"
|
||||
text_hash: "c38f76c7f8ede85f7e63d17057e37623d5b9193d3cf48a710df70f7dcc36e36f"
|
||||
retrieved_at: "2026-07-04"
|
||||
confidence: "official"
|
||||
tags: ["legal", "us-code"]
|
||||
---
|
||||
|
||||
# 11 U.S.C. § 558 - Defenses of the estate
|
||||
|
||||
## Text
|
||||
|
||||
The estate shall have the benefit of any defense available to the debtor as against any entity other than the estate, including statutes of limitation, statutes of frauds, usury, and other personal defenses. A waiver of any such defense by the debtor after the commencement of the case does not bind the estate.
|
||||
|
||||
(Added Pub. L. 98–353, title III, § 470(a), July 10, 1984, 98 Stat. 380.)
|
||||
|
||||
## Notes
|
||||
|
||||
Statutory Notes and Related Subsidiaries
|
||||
|
||||
Effective DateSection effective with respect to cases filed 90 days after July 10, 1984, see section 552(a) of Pub. L. 98–353, set out as an Effective Date of 1984 Amendment note under section 101 of this title.
|
||||
@@ -0,0 +1,51 @@
|
||||
---
|
||||
type: "LegalText"
|
||||
title: "11 U.S.C. § 559"
|
||||
description: "Contractual right to liquidate, terminate, or accelerate a repurchase agreement"
|
||||
jurisdiction: "us"
|
||||
corpus: "united_states_code"
|
||||
kind: "code_section"
|
||||
title_number: 11
|
||||
title_name: "BANKRUPTCY"
|
||||
chapter_number: "5"
|
||||
chapter_name: "CREDITORS, THE DEBTOR, AND THE ESTATE"
|
||||
section: "559"
|
||||
citation: "11 U.S.C. § 559"
|
||||
status: "current"
|
||||
release_point: "119-100"
|
||||
release_date: "2026-06-26"
|
||||
source: "official"
|
||||
source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc11@119-100.zip"
|
||||
source_identifier: "/us/usc/t11/s559"
|
||||
source_file: "data/legal/raw/us/code/title-11/usc11.xml"
|
||||
source_hash: "b02132c553240e9f69d384c31fc2fd43cbb5161a37363afa471b0485a1f1b781"
|
||||
raw_snapshot_hash: "49b32bf784de01de21874d64b5d1d78d1d245352824a03caa6d6b941a4a2c9a2"
|
||||
text_hash: "0e86ce8bdb010d90946c0767f0a86856bfa95d93746b4058796e357bd555c132"
|
||||
retrieved_at: "2026-07-04"
|
||||
confidence: "official"
|
||||
tags: ["legal", "us-code"]
|
||||
---
|
||||
|
||||
# 11 U.S.C. § 559 - Contractual right to liquidate, terminate, or accelerate a repurchase agreement
|
||||
|
||||
## Text
|
||||
|
||||
The exercise of a contractual right of a repo participant or financial participant to cause the liquidation, termination, or acceleration of a repurchase agreement because of a condition of the kind specified in section 365(e)(1) of this title shall not be stayed, avoided, or otherwise limited by operation of any provision of this title or by order of a court or administrative agency in any proceeding under this title, unless, where the debtor is a stockbroker or securities clearing agency, such order is authorized under the provisions of the Securities Investor Protection Act of 1970 or any statute administered by the Securities and Exchange Commission. In the event that a repo participant or financial participant liquidates one or more repurchase agreements with a debtor and under the terms of one or more such agreements has agreed to deliver assets subject to repurchase agreements to the debtor, any excess of the market prices received on liquidation of such assets (or if any such assets are not disposed of on the date of liquidation of such repurchase agreements, at the prices available at the time of liquidation of such repurchase agreements from a generally recognized source or the most recent closing bid quotation from such a source) over the sum of the stated repurchase prices and all expenses in connection with the liquidation of such repurchase agreements shall be deemed property of the estate, subject to the available rights of setoff. As used in this section, the term “contractual right” includes a right set forth in a rule or bylaw of a derivatives clearing organization (as defined in the Commodity Exchange Act), a multilateral clearing organization (as defined in the Federal Deposit Insurance Corporation Improvement Act of 1991), a national securities exchange, a national securities association, a securities clearing agency, a contract market designated under the Commodity Exchange Act, a derivatives transaction execution facility registered under the Commodity Exchange Act, or a board of trade (as defined in the Commodity Exchange Act) or in a resolution of the governing board thereof and a right, whether or not evidenced in writing, arising under common law, under law merchant or by reason of normal business practice.
|
||||
|
||||
(Added Pub. L. 98–353, title III, § 396(a), July 10, 1984, 98 Stat. 366; amended Pub. L. 103–394, title V, § 501(d)(21), Oct. 22, 1994, 108 Stat. 4146; Pub. L. 109–8, title IX, § 907(i), (o)(9), Apr. 20, 2005, 119 Stat. 178, 182.)
|
||||
|
||||
## Notes
|
||||
|
||||
Editorial Notes
|
||||
|
||||
References in TextThe Securities Investor Protection Act of 1970, referred to in text, is Pub. L. 91–598, Dec. 30, 1970, 84 Stat. 1636, which is classified generally to chapter 2B–1 (§ 78aaa et seq.) of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see section 78aaa of Title 15 and Tables. The Commodity Exchange Act, referred to in text, is act Sept. 21, 1922, ch. 369, 42 Stat. 998, which is classified generally to chapter 1 (§ 1 et seq.) of Title 7, Agriculture. For complete classification of this Act to the Code, see section 1 of Title 7 and Tables. The Federal Deposit Insurance Corporation Improvement Act of 1991, referred to in text, is Pub. L. 102–242, Dec. 19, 1991, 105 Stat. 2236. For complete classification of this Act to the Code, see Short Title of 1991 Amendment note set out under section 1811 of Title 12, Banks and Banking, and Tables.
|
||||
|
||||
Amendments2005—Pub. L. 109–8, § 907(o)(9), inserted “or financial participant” after “repo participant” in two places. Pub. L. 109–8, § 907(i), substituted “Contractual right to liquidate, terminate, or accelerate a repurchase agreement” for “Contractual right to liquidate a repurchase agreement” in section catchline, “liquidation, termination, or acceleration” for “liquidation” in first sentence, and “As used in this section, the term ‘contractual right’ includes a right set forth in a rule or bylaw of a derivatives clearing organization (as defined in the Commodity Exchange Act), a multilateral clearing organization (as defined in the Federal Deposit Insurance Corporation Improvement Act of 1991), a national securities exchange, a national securities association, a securities clearing agency, a contract market designated under the Commodity Exchange Act, a derivatives transaction execution facility registered under the Commodity Exchange Act, or a board of trade (as defined in the Commodity Exchange Act) or in a resolution of the governing board thereof and a right,” for “As used in this section, the term ‘contractual right’ includes a right set forth in a rule or bylaw, applicable to each party to the repurchase agreement, of a national securities exchange, a national securities association, or a securities clearing agency, and a right,” in third sentence. 1994—Pub. L. 103–394 struck out “(15 U.S.C. 78aaa et seq.)” after “Act of 1970”.
|
||||
|
||||
Statutory Notes and Related Subsidiaries
|
||||
|
||||
Effective Date of 2005 AmendmentAmendment by Pub. L. 109–8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of this title.
|
||||
|
||||
Effective Date of 1994 AmendmentAmendment by Pub. L. 103–394 effective Oct. 22, 1994, and not applicable with respect to cases commenced under this title before Oct. 22, 1994, see section 702 of Pub. L. 103–394, set out as a note under section 101 of this title.
|
||||
|
||||
Effective DateSection effective with respect to cases filed 90 days after July 10, 1984, see section 552(a) of Pub. L. 98–353, set out as an Effective Date of 1984 Amendment note under section 101 of this title.
|
||||
@@ -0,0 +1,47 @@
|
||||
---
|
||||
type: "LegalText"
|
||||
title: "11 U.S.C. § 560"
|
||||
description: "Contractual right to liquidate, terminate, or accelerate a swap agreement"
|
||||
jurisdiction: "us"
|
||||
corpus: "united_states_code"
|
||||
kind: "code_section"
|
||||
title_number: 11
|
||||
title_name: "BANKRUPTCY"
|
||||
chapter_number: "5"
|
||||
chapter_name: "CREDITORS, THE DEBTOR, AND THE ESTATE"
|
||||
section: "560"
|
||||
citation: "11 U.S.C. § 560"
|
||||
status: "current"
|
||||
release_point: "119-100"
|
||||
release_date: "2026-06-26"
|
||||
source: "official"
|
||||
source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc11@119-100.zip"
|
||||
source_identifier: "/us/usc/t11/s560"
|
||||
source_file: "data/legal/raw/us/code/title-11/usc11.xml"
|
||||
source_hash: "b2df20c56dce75672bb591e73c138f41de2a22d1b46fc3e5ae13855ef0c0b628"
|
||||
raw_snapshot_hash: "49b32bf784de01de21874d64b5d1d78d1d245352824a03caa6d6b941a4a2c9a2"
|
||||
text_hash: "c176a0cebae98e043703ddddfeb3596b6a02e7aa6a5a9bb49f9f61ec73c8267f"
|
||||
retrieved_at: "2026-07-04"
|
||||
confidence: "official"
|
||||
tags: ["legal", "us-code"]
|
||||
---
|
||||
|
||||
# 11 U.S.C. § 560 - Contractual right to liquidate, terminate, or accelerate a swap agreement
|
||||
|
||||
## Text
|
||||
|
||||
The exercise of any contractual right of any swap participant or financial participant to cause the liquidation, termination, or acceleration of one or more swap agreements because of a condition of the kind specified in section 365(e)(1) of this title or to offset or net out any termination values or payment amounts arising under or in connection with the termination, liquidation, or acceleration of one or more swap agreements shall not be stayed, avoided, or otherwise limited by operation of any provision of this title or by order of a court or administrative agency in any proceeding under this title. As used in this section, the term “contractual right” includes a right set forth in a rule or bylaw of a derivatives clearing organization (as defined in the Commodity Exchange Act), a multilateral clearing organization (as defined in the Federal Deposit Insurance Corporation Improvement Act of 1991), a national securities exchange, a national securities association, a securities clearing agency, a contract market designated under the Commodity Exchange Act, a derivatives transaction execution facility registered under the Commodity Exchange Act, or a board of trade (as defined in the Commodity Exchange Act) or in a resolution of the governing board thereof and a right, whether or not evidenced in writing, arising under common law, under law merchant, or by reason of normal business practice.
|
||||
|
||||
(Added Pub. L. 101–311, title I, § 106(a), June 25, 1990, 104 Stat. 268; amended Pub. L. 109–8, title IX, § 907(j), (o)(10), Apr. 20, 2005, 119 Stat. 178, 182.)
|
||||
|
||||
## Notes
|
||||
|
||||
Editorial Notes
|
||||
|
||||
References in TextThe Commodity Exchange Act, referred to in text, is act Sept. 21, 1922, ch. 369, 42 Stat. 998, which is classified generally to chapter 1 (§ 1 et seq.) of Title 7, Agriculture. For complete classification of this Act to the Code, see section 1 of Title 7 and Tables. The Federal Deposit Insurance Corporation Improvement Act of 1991, referred to in text, is Pub. L. 102–242, Dec. 19, 1991, 105 Stat. 2236. For complete classification of this Act to the Code, see Short Title of 1991 Amendment note set out under section 1811 of Title 12, Banks and Banking, and Tables.
|
||||
|
||||
Amendments2005—Pub. L. 109–8, § 907(o)(10), inserted “or financial participant” after “swap participant” in first sentence. Pub. L. 109–8, § 907(j)(1), in section catchline, substituted “Contractual right to liquidate, terminate, or accelerate a swap agreement” for “Contractual right to terminate a swap agreement”, in first sentence, substituted “liquidation, termination, or acceleration of one or more swap agreements” for “termination of a swap agreement” and “in connection with the termination, liquidation, or acceleration of one or more swap agreements” for “in connection with any swap agreement”, and in second sentence, substituted “As used in this section, the term ‘contractual right’ includes a right set forth in a rule or bylaw of a derivatives clearing organization (as defined in the Commodity Exchange Act), a multilateral clearing organization (as defined in the Federal Deposit Insurance Corporation Improvement Act of 1991), a national securities exchange, a national securities association, a securities clearing agency, a contract market designated under the Commodity Exchange Act, a derivatives transaction execution facility registered under the Commodity Exchange Act, or a board of trade (as defined in the Commodity Exchange Act) or in a resolution of the governing board thereof and a right,” for “As used in this section, the term ‘contractual right’ includes a right,”.
|
||||
|
||||
Statutory Notes and Related Subsidiaries
|
||||
|
||||
Effective Date of 2005 AmendmentAmendment by Pub. L. 109–8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of this title.
|
||||
@@ -0,0 +1,77 @@
|
||||
---
|
||||
type: "LegalText"
|
||||
title: "11 U.S.C. § 561"
|
||||
description: "Contractual right to terminate, liquidate, accelerate, or offset under a master netting agreement and across contracts; proceedings under chapter 15"
|
||||
jurisdiction: "us"
|
||||
corpus: "united_states_code"
|
||||
kind: "code_section"
|
||||
title_number: 11
|
||||
title_name: "BANKRUPTCY"
|
||||
chapter_number: "5"
|
||||
chapter_name: "CREDITORS, THE DEBTOR, AND THE ESTATE"
|
||||
section: "561"
|
||||
citation: "11 U.S.C. § 561"
|
||||
status: "current"
|
||||
release_point: "119-100"
|
||||
release_date: "2026-06-26"
|
||||
source: "official"
|
||||
source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc11@119-100.zip"
|
||||
source_identifier: "/us/usc/t11/s561"
|
||||
source_file: "data/legal/raw/us/code/title-11/usc11.xml"
|
||||
source_hash: "14029dcb122b8bc046d608a00aae10fe27d55272fab9f8f4027e664d903557f0"
|
||||
raw_snapshot_hash: "49b32bf784de01de21874d64b5d1d78d1d245352824a03caa6d6b941a4a2c9a2"
|
||||
text_hash: "7f00c0571b997ba268ab278bd377b71823c9f76892aa90029bfb783b04f84137"
|
||||
retrieved_at: "2026-07-04"
|
||||
confidence: "official"
|
||||
tags: ["legal", "us-code"]
|
||||
---
|
||||
|
||||
# 11 U.S.C. § 561 - Contractual right to terminate, liquidate, accelerate, or offset under a master netting agreement and across contracts; proceedings under chapter 15
|
||||
|
||||
## Text
|
||||
|
||||
(a) Subject to subsection (b), the exercise of any contractual right, because of a condition of the kind specified in section 365(e)(1), to cause the termination, liquidation, or acceleration of or to offset or net termination values, payment amounts, or other transfer obligations arising under or in connection with one or more (or the termination, liquidation, or acceleration of one or more)—
|
||||
|
||||
(1) securities contracts, as defined in section 741(7);
|
||||
|
||||
(2) commodity contracts, as defined in section 761(4);
|
||||
|
||||
(3) forward contracts;
|
||||
|
||||
(4) repurchase agreements;
|
||||
|
||||
(5) swap agreements; or
|
||||
|
||||
(6) master netting agreements,
|
||||
|
||||
shall not be stayed, avoided, or otherwise limited by operation of any provision of this title or by any order of a court or administrative agency in any proceeding under this title.
|
||||
|
||||
(b) (1) A party may exercise a contractual right described in subsection (a) to terminate, liquidate, or accelerate only to the extent that such party could exercise such a right under section 555, 556, 559, or 560 for each individual contract covered by the master netting agreement in issue.
|
||||
|
||||
(2) If a debtor is a commodity broker subject to subchapter IV of chapter 7—
|
||||
|
||||
(A) a party may not net or offset an obligation to the debtor arising under, or in connection with, a commodity contract traded on or subject to the rules of a contract market designated under the Commodity Exchange Act or a derivatives transaction execution facility registered under the Commodity Exchange Act against any claim arising under, or in connection with, other instruments, contracts, or agreements listed in subsection (a) except to the extent that the party has positive net equity in the commodity accounts at the debtor, as calculated under such subchapter; and
|
||||
|
||||
(B) another commodity broker may not net or offset an obligation to the debtor arising under, or in connection with, a commodity contract entered into or held on behalf of a customer of the debtor and traded on or subject to the rules of a contract market designated under the Commodity Exchange Act or a derivatives transaction execution facility registered under the Commodity Exchange Act against any claim arising under, or in connection with, other instruments, contracts, or agreements listed in subsection (a).
|
||||
|
||||
(3) No provision of subparagraph (A) or (B) of paragraph (2) shall prohibit the offset of claims and obligations that arise under—
|
||||
|
||||
(A) a cross-margining agreement or similar arrangement that has been approved by the Commodity Futures Trading Commission or submitted to the Commodity Futures Trading Commission under paragraph (1) or (2) of section 5c(c) of the Commodity Exchange Act and has not been abrogated or rendered ineffective by the Commodity Futures Trading Commission; or
|
||||
|
||||
(B) any other netting agreement between a clearing organization (as defined in section 761) and another entity that has been approved by the Commodity Futures Trading Commission.
|
||||
|
||||
(c) As used in this section, the term “contractual right” includes a right set forth in a rule or bylaw of a derivatives clearing organization (as defined in the Commodity Exchange Act), a multilateral clearing organization (as defined in the Federal Deposit Insurance Corporation Improvement Act of 1991), a national securities exchange, a national securities association, a securities clearing agency, a contract market designated under the Commodity Exchange Act, a derivatives transaction execution facility registered under the Commodity Exchange Act, or a board of trade (as defined in the Commodity Exchange Act) or in a resolution of the governing board thereof, and a right, whether or not evidenced in writing, arising under common law, under law merchant, or by reason of normal business practice.
|
||||
|
||||
(d) Any provisions of this title relating to securities contracts, commodity contracts, forward contracts, repurchase agreements, swap agreements, or master netting agreements shall apply in a case under chapter 15, so that enforcement of contractual provisions of such contracts and agreements in accordance with their terms will not be stayed or otherwise limited by operation of any provision of this title or by order of a court in any case under this title, and to limit avoidance powers to the same extent as in a proceeding under chapter 7 or 11 of this title (such enforcement not to be limited based on the presence or absence of assets of the debtor in the United States).
|
||||
|
||||
(Added Pub. L. 109–8, title IX, § 907(k)(1), Apr. 20, 2005, 119 Stat. 179.)
|
||||
|
||||
## Notes
|
||||
|
||||
Editorial Notes
|
||||
|
||||
References in TextThe Commodity Exchange Act, referred to in subsecs. (b)(2) and (c), is act Sept. 21, 1922, ch. 369, 42 Stat. 998, which is classified generally to chapter 1 (§ 1 et seq.) of Title 7, Agriculture. Section 5c(c) of the Act is classified to section 7a–2(c) of Title 7. For complete classification of this Act to the Code, see section 1 of Title 7 and Tables. The Federal Deposit Insurance Corporation Improvement Act of 1991, referred to in subsec. (c), is Pub. L. 102–242, Dec. 19, 1991, 105 Stat. 2236. For complete classification of this Act to the Code, see Short Title of 1991 Amendment note set out under section 1811 of Title 12, Banks and Banking, and Tables.
|
||||
|
||||
Statutory Notes and Related Subsidiaries
|
||||
|
||||
Effective DateSection effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as an Effective Date of 2005 Amendment note under section 101 of this title.
|
||||
@@ -0,0 +1,55 @@
|
||||
---
|
||||
type: "LegalText"
|
||||
title: "11 U.S.C. § 562"
|
||||
description: "Timing of damage measurement in connection with swap agreements, securities contracts, forward contracts, commodity contracts, repurchase agreements, and master netting agreements"
|
||||
jurisdiction: "us"
|
||||
corpus: "united_states_code"
|
||||
kind: "code_section"
|
||||
title_number: 11
|
||||
title_name: "BANKRUPTCY"
|
||||
chapter_number: "5"
|
||||
chapter_name: "CREDITORS, THE DEBTOR, AND THE ESTATE"
|
||||
section: "562"
|
||||
citation: "11 U.S.C. § 562"
|
||||
status: "current"
|
||||
release_point: "119-100"
|
||||
release_date: "2026-06-26"
|
||||
source: "official"
|
||||
source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc11@119-100.zip"
|
||||
source_identifier: "/us/usc/t11/s562"
|
||||
source_file: "data/legal/raw/us/code/title-11/usc11.xml"
|
||||
source_hash: "014111f979c5e49b2eaf633b2d141b36471682efa62c2594fdeea26b3b3b60dc"
|
||||
raw_snapshot_hash: "49b32bf784de01de21874d64b5d1d78d1d245352824a03caa6d6b941a4a2c9a2"
|
||||
text_hash: "37cadc3a331b7858f8980fc7ab286f83bbaaab7ddc69405effa19a3e23414baf"
|
||||
retrieved_at: "2026-07-04"
|
||||
confidence: "official"
|
||||
tags: ["legal", "us-code"]
|
||||
---
|
||||
|
||||
# 11 U.S.C. § 562 - Timing of damage measurement in connection with swap agreements, securities contracts, forward contracts, commodity contracts, repurchase agreements, and master netting agreements
|
||||
|
||||
## Text
|
||||
|
||||
(a) If the trustee rejects a swap agreement, securities contract (as defined in section 741), forward contract, commodity contract (as defined in section 761), repurchase agreement, or master netting agreement pursuant to section 365(a), or if a forward contract merchant, stockbroker, financial institution, securities clearing agency, repo participant, financial participant, master netting agreement participant, or swap participant liquidates, terminates, or accelerates such contract or agreement, damages shall be measured as of the earlier of—
|
||||
|
||||
(1) the date of such rejection; or
|
||||
|
||||
(2) the date or dates of such liquidation, termination, or acceleration.
|
||||
|
||||
(b) If there are not any commercially reasonable determinants of value as of any date referred to in paragraph (1) or (2) of subsection (a), damages shall be measured as of the earliest subsequent date or dates on which there are commercially reasonable determinants of value.
|
||||
|
||||
(c) For the purposes of subsection (b), if damages are not measured as of the date or dates of rejection, liquidation, termination, or acceleration, and the forward contract merchant, stockbroker, financial institution, securities clearing agency, repo participant, financial participant, master netting agreement participant, or swap participant or the trustee objects to the timing of the measurement of damages—
|
||||
|
||||
(1) the trustee, in the case of an objection by a forward contract merchant, stockbroker, financial institution, securities clearing agency, repo participant, financial participant, master netting agreement participant, or swap participant; or
|
||||
|
||||
(2) the forward contract merchant, stockbroker, financial institution, securities clearing agency, repo participant, financial participant, master netting agreement participant, or swap participant, in the case of an objection by the trustee,
|
||||
|
||||
has the burden of proving that there were no commercially reasonable determinants of value as of such date or dates.
|
||||
|
||||
(Added Pub. L. 109–8, title IX, § 910(a)(1), Apr. 20, 2005, 119 Stat. 184.)
|
||||
|
||||
## Notes
|
||||
|
||||
Statutory Notes and Related Subsidiaries
|
||||
|
||||
Effective DateSection effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as an Effective Date of 2005 Amendment note under section 101 of this title.
|
||||
Reference in New Issue
Block a user