§1305 — Title 11 Bankruptcy | U.S. Code

Summary

After a Chapter 13 bankruptcy case starts, a person or group owed money can file a claim only in two situations: taxes that become due to a government while the case is pending, or a consumer debt created after the case starts for goods or services needed for the debtor to carry out the plan. Those claims are decided under section 502 and are treated as if they began on the date they arose; they may be allowed under 502(a)–(c) or denied under 502(d)–(e). A consumer claim under the second rule will be denied if the creditor knew or should have known that getting the trustee’s prior approval was practical but did not get it.

Title 11, §1305

Bankruptcy — Source: USLM XML via OLRC

(a)A proof of claim may be filed by any entity that holds a claim against the debtor—

(1)for taxes that become payable to a governmental unit while the case is pending; or

(2)that is a consumer debt, that arises after the date of the order for relief under this chapter, and that is for property or services necessary for the debtor’s performance under the plan.

(b)Except as provided in subsection (c) of this section, a claim filed under subsection (a) of this section shall be allowed or disallowed under section 502 of this title, but shall be determined as of the date such claim arises, and shall be allowed under section 502(a), 502(b), or 502(c) of this title, or disallowed under section 502(d) or 502(e) of this title, the same as if such claim had arisen before the date of the filing of the petition.

(c)A claim filed under subsection (a)(2) of this section shall be disallowed if the holder of such claim knew or should have known that prior approval by the trustee of the debtor’s incurring the obligation was practicable and was not obtained.

Notes & Related Subsidiaries

Historical and Revision Notes

Legislative Statements

section 1305(a)(2) of the House amendment modifies similar provisions contained in the House and Senate bills by restricting application of the paragraph to a consumer debt. Debts of the debtor that are not consumer debts should not be subjected to section 1305(c) or section 1328(d) of the House amendment. section 1305(b) of the House amendment represents a technical modification of similar provisions contained in the House bill and Senate amendment. The House amendment deletes section 1305(d) of the Senate amendment as unnecessary. section 502(b)(1) is sufficient to disallow any claim to the extent the claim represents the usurious interest or any other charge forbidden by applicable law. It is anticipated that the Rules of Bankruptcy Procedure may require a creditor filing a proof of claim in a case under chapter 13 to include an affirmative statement as contemplated by section 1305(d) of the Senate amendment.

senate report no. 95–989

section 1305, exclusively applicable in chapter 13 cases, supplements the provisions of section 501–511 of title 11, dealing with the filing and allowance of claims. section 501–511 apply in chapter 13 cases by virtue of section 103(a) of this title. section 1305(a) provides for the filing of a proof of claim for taxes and other obligations incurred after the filing of the chapter 13 case. Subsection (b) prescribes that section 502 of title 11 governs the allowance of section 1305(a) claims, except that its standards shall be applied as of the date of allowance of the claim, rather than the date of filing of the petition. Subsection (c) requires the disallowance of a postpetition claim for property or services necessary for the debtor’s performance under the plan, if the holder of the claim knew or should have known that prior approval by the trustee of the debtor’s incurring of the obligation was practicable and was not obtained.

house report no. 95–595

Subsection (a) permits the filing of a proof of a claim against the debtor that is for taxes that become payable to a governmental unit while the case is pending, or that arises after the date of the filing of the petition for property or services that are necessary for the debtor’s performance under the plan, such as auto repairs in order that the debtor will be able to get to work, or medical bills. The effect of the latter provision, in paragraph (2), is to treat postpetition credit extended to a chapter 13 debtor the same as a prepetition claim for purposes of allowance, distribution, and so on.

§1305 Filing and allowance of postpetition claims