§1194 — Title 11 Bankruptcy | U.S. Code

Summary

Trustee holds any payments until the bankruptcy plan is approved or rejected. If approved (including under special confirmation rules), the trustee pays creditors under the plan unless the plan or confirmation order says otherwise. If rejected, the trustee returns the money to the debtor after subtracting unpaid allowed administrative claims, payments protecting secured creditors’ interests, and the trustee’s fee. Before approval, the court may allow protection payments after notice and hearing.

Title 11, §1194

Bankruptcy — Source: USLM XML via OLRC

(a)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—

(1)any unpaid claim allowed under section 503(b) of this title;

(2)any payment made for the purpose of providing adequate protection of an interest in property due to the holder of a secured claim; and

(3)any fee owing to the trustee.

(b)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.

(c)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.

Statutory Notes and Related Subsidiaries

Effective Date

Section effective 180 days after Aug. 23, 2019, see section 5 of Pub. L. 116–54, set out as an

Effective Date

of 2019 Amendment note under section 101 of this title.

§1194 Payments

Summary

Title 11, §1194

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Citations & Metadata