Title 11 — Bankruptcy
Chapter 11 — Reorganization
§ 1111. Claims and interests
Statutory text
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(a)(1) or 1106(a)(2) of this title, except a claim or interest that is scheduled as disputed, contingent, or unliquidated.
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—
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
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.
A class of claims may not elect application of paragraph (2) of this subsection if—
the interest on account of such claims of the holders of such claims in such property is of inconsequential value; or
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.
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.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Pub. L. 95–598 · 92 Stat. 2549
Enacted · 11 U.S.C. § 1111
Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2630
Source evidence
Code source credit
Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2630Bankruptcy Technical Corrections Act of 2010
Pub. L. 111–327 § 2(a)(32) · 124 Stat. 3557
Substituted · 11 U.S.C. § 1111(a)
Pub. L. 111–327 substituted “521(a)(1)” for “521(1)”
Source evidence
Code amendment note
Subsec. (a). Pub. L. 111–327 substituted “521(a)(1)” for “521(1)”.Enacted provision · exact public law section
(32) in section 1111(a) by striking “521(1)” and inserting “521(a)(1)”,
1 of 2 references resolved to an enrolled provision · 1 partial
Notes
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.
Editorial Notes
Amendments
2010—Subsec. (a). Pub. L. 111–327 substituted “521(a)(1)” for “521(1)”.
Credits
1978–2010 · 2 acts
- 1978Pub. L. 95–598, , 92 Stat. 2630
- 2010Pub. L. 111–327, § 2(a)(32), , 124 Stat. 3561.
Show as published
(Pub. L. 95–598, , 92 Stat. 2630; Pub. L. 111–327, § 2(a)(32), , 124 Stat. 3561.)