11 U.S.C. § 1194 — Payments
submitted 7 years ago by Pub. L. 116-54 to r/title-11-BANKRUPTCY · 193 words · no verdicts yet
This section says when a trustee holds and distributes payments under a plan, when payments are returned, and when the court may authorize payments before confirmation.
(a) Retention and distribution by trustee. The trustee must hold payments and funds received until the plan is confirmed or confirmation is denied. If confirmed, the trustee distributes payments under the plan. If not confirmed, the trustee returns the payments to the debtor* after deducting: (1) unpaid claims allowed under section 503(b); (2) payments made to adequately protect an interest in property securing a claim*; and (3) fees owed to the trustee.
(b) Other plans. If a plan is confirmed under section 1191(b), the trustee must pay creditors under the plan unless the plan or confirmation order says otherwise.
(c) Payments before confirmation. Before confirmation, the court may, after notice and a hearing, authorize the trustee to pay the holder of a secured claim to provide adequate protection of an interest in property.
Payments and funds received by the trustee shall be retained by the trustee until confirmation or denial of confirmation of a plan. If a plan is confirmed, the trustee shall distribute any such payment in accordance with the plan. If a plan is not confirmed, the trustee shall return any such payments to the debtor* after deducting—
any unpaid claim* allowed under section 503(b) of this title;
any payment made for the purpose of providing adequate protection of an interest in property due to the holder of a secured claim; and
any fee owing to the trustee.
If a plan is confirmed under section 1191(b) of this title, except as otherwise provided in the plan or in the order confirming the plan, the trustee shall make payments to creditors under the plan.
Prior to confirmation of a plan, the court, after notice and a hearing, may authorize the trustee to make payments to the holder of a secured claim for the purpose of providing adequate protection of an interest in property.
Source credit: (Added Pub. L. 116–54, § 2(a), Aug. 23, 2019, 133 Stat. 1084.)
- 2019Enacted · Pub. L. 116-54 · 133 Stat. 1084
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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