Title 11: Ch.11, Sub. 3, Section 1143
If a plan requires presentment or surrender of a security or the performance of any other act as a condition to participation in distribution under the plan, such action shall be taken not later than five years after the date of the entry of the order of confirmation. Any entity that has not within such time presented or surrendered such entity’s security or taken any such other action that the plan requires may not participate in distribution under the plan.
Explanation: With bankruptcy estate distribution, any court orders regarding a security (i.e. stock) must be fulfilled within 5 years of confirmation of the reorganization plan.
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Title 11: Ch. 11, Sub. 3, Section 1144
On request of a party in interest at any time before 180 days after the date of the entry of the order of confirmation, and after notice and a hearing, the court may revoke such order if and only if such order was procured by fraud. An order under this section revoking an order of confirmation shall:
(1) contain such provisions as are necessary to protect any entity acquiring rights in good faith reliance on the order of confirmation; and
(2) revoke the discharge of the debtor.
Explanation: In a bankruptcy court, once a debtor's reorganization plan has been confirmed, it is very difficult to get this revoked. You have to prove fraud(likely the challenger's burden), which is difficult to allege in law and has many elements. You must also be an interested party and your statute of limitations (deadline) to challenge the confirmed plan is within 180 days of entry of the confirmation.
Chapter 13's importance to individuals
This section of the website is now about to approach Chapter 13. This chapter has application to most people. There are parts of the bankruptcy code that we have not included, because it applies to municipalities, family farmers, etc. This was not done to downplay or lessen to importance of any entity or person facing bankruptcy issues.
This site is simply to serve as a starter resource for the general public, such as an working family facing serious debts.
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Title 11: Ch. 13, Sub. 1, Section 1301
(a) Except as provided in subsections (b) and (c) of this section, after the order for relief under this chapter, a creditor may not act, or commence or continue any civil action, to collect all or any part of a consumer debt of the debtor from any individual that is liable on such debt with the debtor, or that secured such debt, unless:
(1) such individual became liable on or secured such debt in the ordinary course of such individual’s business; or
(2) the case is closed, dismissed, or converted to a case under chapter 7 or 11 of this title.
(b) A creditor may present a negotiable instrument, and may give notice of dishonor of such an instrument.
(c) On request of a party in interest and after notice and a hearing, the court shall grant relief from the stay provided by subsection (a) of this section with respect to a creditor, to the extent that:
(1) as between the debtor and the individual protected under subsection (a) of this section, such individual received the consideration for the claim held by such creditor;
(2) the plan filed by the debtor proposes not to pay such claim; or
(3) such creditor’s interest would be irreparably harmed by continuation of such stay.
(d) Twenty days after the filing of a request under subsection (c)(2) of this section for relief from the stay provided by subsection (a) of this section, such stay is terminated with respect to the party in interest making such request, unless the debtor or any individual that is liable on such debt with the debtor files and serves upon such party in interest a written objection to the taking of the proposed action.
Explanation: Normally someone, who is not the debtor in bankuptcy but shares liability with the debtor, cannot be used by a creditor to satisfy the debt, IF a bankruptcy petition has been submitted. This is not an iron-clad rule and the code points out that creditors still may be able to go after the other liable party in certain situations.
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