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11 U.S.C. § 347Unclaimed property

submitted 48 years ago by Pub. L. 95-598 to r/title-11-BANKRUPTCY · 165 words · no verdicts yet

in plain englishAI-generated · not legal advice

This bankruptcy law covers property left unclaimed after a case ends. Ninety days after final payments, the trustee stops unpaid checks and turns leftover property over to the court. Unclaimed property from certain reorganization plans instead goes to the debtor or new owner.

(a) Ninety days after the final distribution of money in a case under chapter 7 (liquidation), subchapter V of chapter 11, or chapter 12 or 13 (repayment plans), the trustee must stop payment on any check that is still unpaid. Any property still left over from the bankruptcy estate must be paid into the court. From there, it is handled under the rules in chapter 129 of title 28. (b) In a case under chapter 9, 11, or 12, a confirmed plan may require creditors to present a "security" (like a stock or bond) or take some other action by a deadline, in order to receive their share of the payout. If a creditor's security, money, or other property goes unclaimed by that deadline, it does not go back into the estate. Instead, it becomes the property of the debtor, or of whoever acquired the debtor's assets under the plan.
the actual law source: uscode.house.gov ↗public domain
(a)

Ninety days after the final distribution under section 726, 1194, 1226, or 1326 of this title in a case under chapter 7, subchapter V of chapter 11, 12, or 13 1 of this title, as the case may be, the trustee shall stop payment on any check remaining unpaid, and any remaining property of the estate shall be paid into the court and disposed of under chapter 129 of title 28.

(b)

Any security, money, or other property remaining unclaimed at the expiration of the time allowed in a case under chapter 9, 11, or 12 of this title for the presentation of a security or the performance of any other act as a condition to participation in the distribution under any plan confirmed under section 943(b), 1129, 1173, 1191, or 1225 of this title, as the case may be, becomes the property of the debtor or of the entity acquiring the assets of the debtor under the plan, as the case may be.

Source credit: (Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2568; Pub. L. 99–554, title II, § 257(h), Oct. 27, 1986, 100 Stat. 3114; Pub. L. 116–54, § 4(a)(5), Aug. 23, 2019, 133 Stat. 1086; Pub. L. 116–136, div. A, title I, § 1113(a)(4)(B), Mar. 27, 2020, 134 Stat. 311.)

history & why it existsrecord from the source credit
  • 1978Enacted · Pub. L. 95-598 · 92 Stat. 2568
  • 1986Amended · Pub. L. 99-554 · 100 Stat. 3114
  • 2019Amended · Pub. L. 116-54 · 133 Stat. 1086
  • 2020Amended · Pub. L. 116-136 · 134 Stat. 311

A history note hasn’t been published yet. The record shows enactment by Pub. L. 95-598 on 1978-11-06.

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