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11 U.S.C. § 1183 — Trustee

submitted 7 years ago by Pub. L. 116-54 to r/title-11-BANKRUPTCY · 424 words · no verdicts yet

in plain englishAI-generated · not legal advice

This section identifies who serves as trustee in a case under this subchapter and lists the trustee’s duties. It also explains when trustee service ends after a plan is substantially completed and requires the debtor to give notice of that event.

(a) In General. If the United States trustee has appointed an individual under 28 U.S.C. § 586(b) to be a standing trustee in cases under this subchapter, and that individual qualifies as a trustee under 11 U.S.C. § 322, the individual must serve as trustee in every case under this subchapter. Otherwise, the United States trustee must appoint one disinterested person as trustee, or may serve as trustee, as needed.

(b) Duties. The trustee shall—

(1) perform the duties listed in paragraphs (2), (5), (6), (7), and (9) of 11 U.S.C. § 704(a);

(2) perform the duties listed in paragraphs (3), (4), and (7) of 11 U.S.C. § 1106(a) if the court orders it for cause and on a request by a party in interest, the trustee, or the United States trustee;

(3) appear and be heard at the status conference under 11 U.S.C. § 1188 and at any hearing concerning—

(A) the value of property subject to a lien;

(B) confirmation of a plan filed under this subchapter;

(C) changing the plan after confirmation; or

(D) selling estate property;

(4) make sure that the debtor starts making the payments required by a plan confirmed under this subchapter on time;

(5) if the debtor stops being a debtor in possession—

(A) perform the duties listed in 11 U.S.C. § 704(a)(8) and paragraphs (1), (2), and (6) of 11 U.S.C. § 1106(a); and

(B) be authorized to run the debtor’s business;

(6) if the debtor has a claim for a domestic support obligation, perform the duties listed in 11 U.S.C. § 704(c); and

(7) help develop a consensual plan of reorganization.

(c) Termination of Trustee Service.

(1) In general. If the debtor’s plan is confirmed under 11 U.S.C. § 1191(a), the trustee’s service in the case ends when the plan has been substantially completed. However, the United States trustee may appoint a trustee again if needed to perform duties under subsection (b)(3)(C) of this section and 11 U.S.C. § 1185(a).

(2) Service of notice of substantial consummation. No later than 14 days after the plan has been substantially completed, the debtor must file notice of that substantial completion with the court and serve the notice on the trustee, the United States trustee, and all parties in interest.

This section uses the terms “standing trustee,” “disinterested,” “party in interest,” “debtor in possession,” “domestic support obligation,” “consensual plan,” and “substantially consummated.” This section does not define those terms.

the actual law source: uscode.house.gov ↗public domain
(a)In General.—

If the United States trustee has appointed an individual under section 586(b) of title 28 to serve as standing trustee in cases under this subchapter, and if such individual qualifies as a trustee under section 322 of this title, then that individual shall serve as trustee in any case under this subchapter. Otherwise, the United States trustee shall appoint one disinterested person to serve as trustee in the case or the United States trustee may serve as trustee in the case, as necessary.

(b)Duties.—

The trustee shall—

(1)

perform the duties specified in paragraphs (2), (5), (6), (7), and (9) of section 704(a) of this title;

(2)

perform the duties specified in paragraphs (3), (4), and (7) of section 1106(a) of this title, if the court, for cause and on request of a party in interest, the trustee, or the United States trustee, so orders;

(3)

appear and be heard at the status conference under section 1188 of this title and any hearing that concerns—

(A)

the value of property subject to a lien;

(B)

confirmation of a plan filed under this subchapter;

(C)

modification of the plan after confirmation; or

(D)

the sale of property of the estate;

(4)

ensure that the debtor commences making timely payments required by a plan confirmed under this subchapter;

(5)

if the debtor ceases to be a debtor in possession—

(A)

perform the duties specified in section 704(a)(8) and paragraphs (1), (2), and (6) of section 1106(a) of this title; and

(B)

be authorized to operate the business of the debtor;

(6)

if there is a claim for a domestic support obligation with respect to the debtor, perform the duties specified in section 704(c) of this title; and

(7)

facilitate the development of a consensual plan of reorganization.

(c)Termination of Trustee Service.—
(1)In general.—

If the plan of the debtor is confirmed under section 1191(a) of this title, the service of the trustee in the case shall terminate when the plan has been substantially consummated, except that the United States trustee may reappoint a trustee as needed for performance of duties under subsection (b)(3)(C) of this section and section 1185(a) of this title.

(2)Service of notice of substantial consummation.—

Not later than 14 days after the plan of the debtor is substantially consummated, the debtor shall file with the court and serve on the trustee, the United States trustee, and all parties in interest notice of such substantial consummation.

Source credit: (Added Pub. L. 116–54, § 2(a), Aug. 23, 2019, 133 Stat. 1079; amended Pub. L. 117–151, § 2(e), June 21, 2022, 136 Stat. 1299.)

history & why it existsrecord from the source credit
  • 2019Enacted · Pub. L. 116-54 · 133 Stat. 1079
  • 2022Amended · Pub. L. 117-151 · 136 Stat. 1299

A history note hasn’t been published yet. The record shows enactment by Pub. L. 116-54 on 2019-08-23.

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