Page 10 - US Bankruptcy Code Overview

Claims Deadline: Bar Date for all pre-petition claims against the debtor. See 11 U.S.C. § 501; Bankruptcy Rule 3002.
- Proof of claim forms and attachments - evidence of debt, including invoices, agreements and other evidence.
- Do not need to file claim if claim is scheduled by the debtor and listed as liquidated, undisputed and not contingent.
- Post-petition interest, fees and costs may be claimed if provided for under contracts or agreement giving rise to claim - and if the underlying claims are secured claims or the debtor’s plan is a 100% plan.
- Filing a claim submits the creditor to jurisdiction of the Bankruptcy Court.
- Claims which have been timely filed may be amended or withdrawn.
- Allowance of claims - deemed allowed upon filing unless debtor or other party objects within the allotted time. An objection begins a litigation process to adjudicate the claim.
- “Dispute” and estimation process for claims filed as unliquidated, contingent or disputed by the debtor.
Administrative Claims: Court will usually set an administrative claims bar date for all post-petition claims. See 11 U.S.C. § 503.
- Claims for costs and expenses of preserving the estate, including services rendered and goods delivered after the commencement of the case. See 11 U.S.C. § 503(b)(1)(A).
- Administrative claims given priority - likelihood of payment for administrative claims (i.e., post-petition services/goods rendered) is usually quite high unless the chapter 11 case converts to a chapter 7 case.
Discharge of Chapter 11 Debtor. See 11 U.S.C. § 1141.
- Confirmed reorganization plan discharges most debts that arose before confirmation (certain exceptions exist for individual chapter 11 debtors, e.g. alimony support, fraud, etc. see 11 U.S.C. § 523).
- A plan of liquidation of substantially all of the debtor’s assets will not provide a discharge.
- Terminates pre-petition equity interests.
- Usually complemented by permanent injunction upon confirmation of plan (but not when liquidating plan is confirmed).
- In certain asbestos cases, the injunction and discharge can effect future demands and provide relief to non-debtors that contribute to a trust, provided they satisfy other requirements. See 11 U.S.C. § 524(g).
Discharge of Chapter 7 Debtor. See 11 U.S.C. § 727.
- Discharges debtor from all debts that arose before the date of the order for relief.
- Objections to Discharge - must file complaint objecting to discharge within 60 days of first date set for
section 341 meeting of creditors. See Bankruptcy Rule 4004(a). - Grounds for such objections include:
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