Source: https://www.law.cornell.edu/uscode/text/11/109?qt-us_code_tabs=0
Timestamp: 2016-02-11 00:58:01
Document Index: 637344410

Matched Legal Cases: ['§ 109', '§ 109', '§ 109', '§\u202f703', '§\u202f301', '§\u202f253', '§\u202f2', '§\u202f108', '§\u202f220', '§\u202f402', '§\u202f501', '§\u202f1', '§\u202f112', '§\u202f1', '§\u202f1', '§\u202f106', '§\u202f802', '§\u202f1007', '§\u202f1204', '§\u202f2', '§\u202f2', '§\u202f84', '§\u202f611', '§\u202f2', '§\u202f2', '§\u202f1204', '§\u202f802', '§\u202f1007', '§\u202f106', '§\u202f1', '§\u202f1', '§\u202f1', '§\u202f112', '§\u202f1', '§\u202f112', '§\u202f220', '§\u202f402', '§\u202f108', '§\u202f253', '§\u202f253', '§\u202f425', '§\u202f425', '§\u202f425', '§\u202f301', '§\u202f7']

11 U.S. Code § 109 - Who may be a debtor | US Law | LII / Legal Information Institute
U.S. Code › Title 11 › Chapter 1 › § 109 11 U.S. Code § 109 - Who may be a debtor
a domestic insurance company, bank, savings bank, cooperative bank, savings and loan association, building and loan association, homestead association, a New Markets Venture Capital company as defined in section 351 of the Small Business Investment Act of 1958, a small business investment company licensed by the Small Business Administration under section 301 of the Small Business Investment Act of 1958, credit union, or industrial bank or similar institution which is an insured bank as defined in section 3(h) of the Federal Deposit Insurance Act, except that an uninsured State member bank, or a corporation organized under section 25A of the Federal Reserve Act, which operates, or operates as, a multilateral clearing organization pursuant to section 409 of the Federal Deposit Insurance Corporation Improvement Act of 1991 may be a debtor if a petition is filed at the direction of the Board of Governors of the Federal Reserve System; or
a foreign insurance company, engaged in such business in the United States; or
a foreign bank, savings bank, cooperative bank, savings and loan association, building and loan association, or credit union, that has a branch or agency (as defined in section 1(b) of the International Banking Act of 1978) in the United States.
is specifically authorized, in its capacity as a municipality or by name, to be a debtor under such chapter by State law, or by a governmental officer or organization empowered by State law to authorize such entity to be a debtor under such chapter;
desires to effect a plan to adjust such debts; and
has obtained the agreement of creditors holding at least a majority in amount of the claims of each class that such entity intends to impair under a plan in a case under such chapter;
has negotiated in good faith with creditors and has failed to obtain the agreement of creditors holding at least a majority in amount of the claims of each class that such entity intends to impair under a plan in a case under such chapter;
is unable to negotiate with creditors because such negotiation is impracticable; or
reasonably believes that a creditor may attempt to obtain a transfer that is avoidable under section 547 of this title.
Only a railroad, a person that may be a debtor under chapter 7 of this title (except a stockbroker or a commodity broker), and an uninsured State member bank, or a corporation organized under section 25A of the Federal Reserve Act, which operates, or operates as, a multilateral clearing organization pursuant to section 409 of the Federal Deposit Insurance Corporation Improvement Act of 1991 may be a debtor under chapter 11 of this title.
Only an individual with regular income that owes, on the date of the filing of the petition, noncontingent, liquidated, unsecured debts of less than $250,000 and noncontingent, liquidated, secured debts of less than $750,000, or an individual with regular income and such individual’s spouse, except a stockbroker or a commodity broker, that owe, on the date of the filing of the petition, noncontingent, liquidated, unsecured debts that aggregate less than $250,000 and noncontingent, liquidated, secured debts of less than $750,000 may be a debtor under chapter 13 of this title.
Only a family farmer or family fisherman with regular annual income may be a debtor under chapter 12 of this title.
the debtor requested and obtained the voluntary dismissal of the case following the filing of a request for relief from the automatic stay provided by section 362 of this title.
Subject to paragraphs (2) and (3), and notwithstanding any other provision of this section other than paragraph (4) of this subsection, an individual may not be a debtor under this title unless such individual has, during the 180-day period ending on the date of filing of the petition by such individual, received from an approved nonprofit budget and credit counseling agency described in section 111(a) an individual or group briefing (including a briefing conducted by telephone or on the Internet) that outlined the opportunities for available credit counseling and assisted such individual in performing a related budget analysis.
Paragraph (1) shall not apply with respect to a debtor who resides in a district for which the United States trustee (or the bankruptcy administrator, if any) determines that the approved nonprofit budget and credit counseling agencies for such district are not reasonably able to provide adequate services to the additional individuals who would otherwise seek credit counseling from such agencies by reason of the requirements of paragraph (1).
The United States trustee (or the bankruptcy administrator, if any) who makes a determination described in subparagraph (A) shall review such determination not later than 1 year after the date of such determination, and not less frequently than annually thereafter. Notwithstanding the preceding sentence, a nonprofit budget and credit counseling agency may be disapproved by the United States trustee (or the bankruptcy administrator, if any) at any time.
describes exigent circumstances that merit a waiver of the requirements of paragraph (1);
states that the debtor requested credit counseling services from an approved nonprofit budget and credit counseling agency, but was unable to obtain the services referred to in paragraph (1) during the 7-day period beginning on the date on which the debtor made that request; and
is satisfactory to the court.
With respect to a debtor, an exemption under subparagraph (A) shall cease to apply to that debtor on the date on which the debtor meets the requirements of paragraph (1), but in no case may the exemption apply to that debtor after the date that is 30 days after the debtor files a petition, except that the court, for cause, may order an additional 15 days.
The requirements of paragraph (1) shall not apply with respect to a debtor whom the court determines, after notice and hearing, is unable to complete those requirements because of incapacity, disability, or active military duty in a military combat zone. For the purposes of this paragraph, incapacity means that the debtor is impaired by reason of mental illness or mental deficiency so that he is incapable of realizing and making rational decisions with respect to his financial responsibilities; and “disability” means that the debtor is so physically impaired as to be unable, after reasonable effort, to participate in an in person, telephone, or Internet briefing required under paragraph (1).
(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2557; Pub. L. 97–320, title VII, § 703(d), Oct. 15, 1982, 96 Stat. 1539; Pub. L. 98–353, title III, §§ 301, 425, July 10, 1984, 98 Stat. 352, 369; Pub. L. 99–554, title II, § 253, Oct. 27, 1986, 100 Stat. 3105; Pub. L. 100–597, § 2, Nov. 3, 1988, 102 Stat. 3028; Pub. L. 103–394, title I, § 108(a), title II, § 220, title IV, § 402, title V, § 501(d)(2), Oct. 22, 1994, 108 Stat. 4111, 4129, 4141, 4143; Pub. L. 106–554, § 1(a)(5) [title I, § 112(c)(1), (2)], § 1(a)(8) [§ 1(e)], Dec. 21, 2000, 114 Stat. 2763, 2763A–393, 2763A–665; Pub. L. 109–8, title I, § 106(a), title VIII, § 802(d)(1), title X, § 1007(b), title XII, § 1204(1), Apr. 20, 2005, 119 Stat. 37, 146, 188, 193; Pub. L. 111–16, § 2(1), May 7, 2009, 123 Stat. 1607; Pub. L. 111–327, § 2(a)(6), Dec. 22, 2010, 124 Stat. 3557.)
Section 109(e) represents a compromise between H.R. 8200 as passed by the House and the Senate amendment relating to the dollar amounts restricting eligibility to be a debtor under chapter 13 of title 11. The House amendment adheres to the limit of $100,000 placed on unsecured debts in H.R. 8200 as passed by the House. It adopts a midpoint of $350,000 as a limit on secured claims, a compromise between the level of $500,000 in H.R. 8200 as passed by the House and $200,000 as contained in the Senate amendment.
Subsection (c) defines eligibility for chapter 9. Only a municipality that is unable to pay its debts as they mature, and that is not prohibited by State law from proceeding under chapter 9, is permitted to be a chapter 9 debtor. The subsection is derived from Bankruptcy Act § 84 [section 404 of former title 11], with two changes. First, section 84 requires that the municipality be “generally authorized to file a petition under this chapter by the legislature, or by a governmental officer or organization empowered by State law to authorize the filing of a petition.” The “generally authorized” language is unclear, and has generated a problem for a Colorado Metropolitan District that attempted to use chapter IX [chapter 9 of former title 11] in 1976. The “not prohibited” language provides flexibility for both the States and the municipalities involved, while protecting State sovereignty as required by Ashton v. Cameron County Water District No. 1, 298 U.S. 513 (1936) [56 S.Ct. 892, 80 L.Ed. 1309, 31 Am.Bankr.Rep.N.S. 96, rehearing denied 57 S.Ct. 5, 299 U.S. 619, 81 L.Ed. 457] and Bekins v. United States, 304 U.S. 27 (1938) [58 S.Ct. 811, 82 L.Ed. 1137, 36 Am.Bankr.Rep.N.S. 187, rehearing denied 58 S.Ct. 1043, 1044, 304 U.S. 589, 82 L.Ed. 1549].
Subsection (e) specifies eligibility for chapter 13, Adjustment of Debts of an Individual with Regular Income. An individual with regular income, or an individual with regular income and the individual’s spouse, may proceed under chapter 13. As noted in connection with the definition of the term “individual with regular income”, this represents a significant departure from current law. The change might have been too great, however, without some limitation. Thus, the debtor (or the debtor and spouse) must have unsecured debts that aggregate less than $100,000, and secured debts that aggregate less than $500,000. These figures will permit the small sole proprietor, for whom a chapter 11 reorganization is too cumbersome a procedure, to proceed under chapter 13. It does not create a presumption that any sole proprietor within that range is better off in chapter 13 than chapter 11. The conversion rules found in section 1307 will govern the appropriateness of the two chapters for any particular individual. The figures merely set maximum limits.
Section 25A of the Federal Reserve Act, referred to in subsecs. (b)(2) and (d), popularly known as the Edge Act, is classified to subchapter II (§ 611 et seq.) of chapter 6 of Title 12, Banks and Banking. For complete classification of this Act to the Code, see Short Title note set out under section 611 of Title 12 and Tables.
2010—Subsec. (b)(3)(B). Pub. L. 111–327, § 2(a)(6)(A), inserted closing parenthesis after “1978”.
Subsec. (h)(1). Pub. L. 111–327, § 2(a)(6)(B), inserted “other than paragraph (4) of this subsection” after “this section” and substituted “ending on” for “preceding”.
2005—Subsec. (b)(2). Pub. L. 109–8, § 1204(1), struck out “subsection (c) or (d) of” before “section 301”.
Subsec. (b)(3). Pub. L. 109–8, § 802(d)(1), added par. (3) and struck out former par. (3) which read as follows: “a foreign insurance company, bank, savings bank, cooperative bank, savings and loan association, building and loan association, homestead association, or credit union, engaged in such business in the United States.”
Subsec. (f). Pub. L. 109–8, § 1007(b), inserted “or family fisherman” after “family farmer”.
Subsec. (h). Pub. L. 109–8, § 106(a), added subsec. (h).
2000—Subsec. (b)(2). Pub. L. 106–554, § 1(a)(8) [§ 1(e)], inserted “a New Markets Venture Capital company as defined in section 351 of the Small Business Investment Act of 1958,” after “homestead association,”.
Pub. L. 106–554, § 1(a)(5) [title I, § 112(c)(1)], substituted “, except that an uninsured State member bank, or a corporation organized under section 25A of the Federal Reserve Act, which operates, or operates as, a multilateral clearing organization pursuant to section 409 of the Federal Deposit Insurance Corporation Improvement Act of 1991 may be a debtor if a petition is filed at the direction of the Board of Governors of the Federal Reserve System; or” for “; or”.
Subsec. (d). Pub. L. 106–554, § 1(a)(5) [title I, § 112(c)(2)], amended subsec. (d) generally. Prior to amendment, subsec. (d) read as follows: “Only a person that may be a debtor under chapter 7 of this title, except a stockbroker or a commodity broker, and a railroad may be a debtor under chapter 11 of this title.”
1994—Subsec. (b)(2). Pub. L. 103–394, §§ 220, 501(d)(2), inserted “a small business investment company licensed by the Small Business Administration under subsection (c) or (d) of section 301 of the Small Business Investment Act of 1958,” after “homestead association,” and struck out “(12 U.S.C. 1813(h))” after “Insurance Act”.
Subsec. (c)(2). Pub. L. 103–394, § 402, substituted “specifically authorized, in its capacity as a municipality or by name,” for “generally authorized”.
Subsec. (e). Pub. L. 103–394, § 108(a), substituted “$250,000” and “$750,000” for “$100,000” and “$350,000”, respectively, in two places.
1988—Subsec. (c)(3). Pub. L. 100–597 struck out “or unable to meet such entity’s debts as such debts mature” after “insolvent”.
1986—Subsec. (f). Pub. L. 99–554, § 253(1)(B), (2), added subsec. (f) and redesignated former subsec. (f) as (g).
Subsec. (g). Pub. L. 99–554, § 253(1), redesignated former subsec. (f) as (g) and inserted reference to family farmer.
1984—Subsec. (a). Pub. L. 98–353, § 425(a), struck out “in the United States,” after “only a person that resides”.
Subsec. (c)(5)(D). Pub. L. 98–353, § 425(b), substituted “transfer that is avoidable under section 547 of this title” for “preference”.
Subsec. (d). Pub. L. 98–353, § 425(c), substituted “stockbroker” for “stockholder”.
Subsec. (f). Pub. L. 98–353, § 301, added subsec. (f).
Pub. L. 111–16, § 7, May 7, 2009, 123 Stat. 1609, provided that: “The amendments made by this Act [amending this section, sections 322, 332, 342, 521, 704, 749, and 764 of this title,sections 983, 1514, 1963, 2252A, 2339B, 3060, 3432, 3509, and 3771 of Title 18, Crimes and Criminal Procedure, section 7 of the Classified Information Procedures Act set out in the Appendix to Title 18, section 853 of Title 21, Food and Drugs, and sections 636, 1453, and 2107 of Title 28, Judiciary and Judicial Procedure] shall take effect on December 1, 2009.”
By notice dated Feb. 12, 2013, 78 F.R. 12089, effective Apr. 1, 2013, in subsec. (e), dollar amounts “360,475” and “1,081,400” were adjusted to “383,175” and “1,149,525”, respectively, each time they appeared. See notice of the Judicial Conference of the United States set out as a note under section 104 of this title.
By notice dated Feb. 19, 2010, 75 F.R. 8747, effective Apr. 1, 2010, in subsec. (e), dollar amounts “336,900” and “1,010,650” were adjusted to “360,475” and “1,081,400”, respectively, each time they appeared.