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

Summary

A confirmed repayment plan legally binds the person who owes money and all their creditors, even if a creditor did not file a claim, did not get the claim allowed, or did not agree to the plan. The person who owes money is released from all debts once the plan is approved, they give any required payments or security to the court’s pay agent, and the court says those payments or guarantees will be valid and properly provided. They are not released from debts the plan or the court says are excluded, or from debts owed to someone who had no notice or actual knowledge of the bankruptcy before the plan was approved.

Title 11, §944

Bankruptcy — Source: USLM XML via OLRC

(a)The provisions of a confirmed plan bind the debtor and any creditor, whether or not—

(1)a proof of such creditor’s claim is filed or deemed filed under section 501 of this title;

(2)such claim is allowed under section 502 of this title; or

(3)such creditor has accepted the plan.

(b)Except as provided in subsection (c) of this section, the debtor is discharged from all debts as of the time when—

(1)the plan is confirmed;

(2)the debtor deposits any consideration to be distributed under the plan with a disbursing agent appointed by the court; and

(3)the court has determined—

(A)that any security so deposited will constitute, after distribution, a valid legal obligation of the debtor; and

(B)that any provision made to pay or secure payment of such obligation is valid.

(c)The debtor is not discharged under subsection (b) of this section from any debt—

(1)excepted from discharge by the plan or order confirming the plan; or

(2)owed to an entity that, before confirmation of the plan, had neither notice nor actual knowledge of the case.

Notes & Related Subsidiaries

Historical and Revision Notes

senate report no. 95–989

[section 947] Subsection (a) [enacted as section 944(a)] makes the provisions of a confirmed plan binding on the debtor and creditors. It is derived from section 95(a) of chapter 9 [section 415(a) of former title 11]. Subsections (b) and (c) [enacted as section 944(b) and (c)] provide for the discharge of a municipality. The discharge is essentially the same as that granted under section 95(b) of the Bankruptcy Act [section 415(b) of former title 11].

§944 Effect of confirmation

Summary

Title 11, §944

Notes & Related Subsidiaries

Historical and Revision Notes

senate report no. 95–989

Citations & Metadata