San Marino Bankruptcy Attorney, Bankruptcy Lawyer, Bankruptcy Code 11 USC Section 1111

TITLE 11 - BANKRUPTCY
CHAPTER 11 - REORGANIZATION
    SUBCHAPTER I - OFFICERS AND ADMINISTRATION

-HEAD-
    Sec. 1111. Claims and interests

-STATUTE-
      (a) A proof of claim or interest is deemed filed under section
    501 of this title for any claim or interest that appears in the
    schedules filed under section 521(1) or 1106(a)(2) of this title,
    except a claim or interest that is scheduled as disputed,
    contingent, or unliquidated.
      (b)(1)(A) A claim secured by a lien on property of the estate
    shall be allowed or disallowed under section 502 of this title the
    same as if the holder of such claim had recourse against the debtor
    on account of such claim, whether or not such holder has such
    recourse, unless - 
        (i) the class of which such claim is a part elects, by at least
      two-thirds in amount and more than half in number of allowed
      claims of such class, application of paragraph (2) of this
      subsection; or
        (ii) such holder does not have such recourse and such property
      is sold under section 363 of this title or is to be sold under
      the plan.

      (B) A class of claims may not elect application of paragraph (2)
    of this subsection if - 
        (i) the interest on account of such claims of the holders of
      such claims in such property is of inconsequential value; or
        (ii) the holder of a claim of such class has recourse against
      the debtor on account of such claim and such property is sold
      under section 363 of this title or is to be sold under the plan.

      (2) If such an election is made, then notwithstanding section
    506(a) of this title, such claim is a secured claim to the extent
    that such claim is allowed.

-SOURCE-
    (Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2630.)


                       HISTORICAL AND REVISION NOTES                   

                          LEGISLATIVE STATEMENTS                      
      A discussion of section 1111(b) of the House amendment is best
    considered in the context of confirmation and will therefore, be
    discussed in connection with section 1129.

                         SENATE REPORT NO. 95-989                     
      This section dispenses with the need for every creditor and
    equity security holder to file a proof of claim or interest in a
    reorganization case. Usually the debtor's schedules are accurate
    enough that they will suffice to determine the claims or interests
    allowable in the case. Thus, the section specifies that any claim
    or interest included on the debtor's schedules is deemed filed
    under section 501. This does not apply to claims or interests that
    are scheduled as disputed, contingent, or unliquidated.

-End-
Professional Membership
