Source: https://www.sagarialaw.com/section-726-distribution-of-property-of-the-estate.html
Timestamp: 2018-12-13 10:44:34
Document Index: 159594364

Matched Legal Cases: ['§ 726', '§ 510', '§ 507', '§ 501', '§ 501', '§ 501', '§ 501', '§ 501', '§ 501', '§ 507', '§ 701', '§ 1112', '§ 503', '§ 701', '§ 503', '§ 701', '§ 543', '§ 541', '§ 503', '§ 541', '§ 503', '§ 507', '§ 541', '§ 541', '§ 541']

Section 726 - Distribution of Property of the Estate :: Fremont Bankruptcy Attorney SagariaLaw
Chapter 7 of the Bankruptcy Code: Subchapter 2
Section 726 - Distribution of Property of the Estate
Distribution of Property of the Estate- Section 726
11 USCS § 726
(a) Except as provided in section 510 of this title [11 USCS § 510], property of the estate shall be distributed--
(1) first, in payment of claims of the kind specified in, and in the order specified in, section 507 of this title [11 USCS § 507], proof of which is timely filed under section 501 of this title [11 USCS § 501] or tardily filed on or before the earlier of--
(A) timely filed under section 501(a) of this title [11 USCS § 501(a)];
(B) timely filed under section 501(b) or 501(c) of this title [11 USCS § 501(b) or 501(c)]; or
(C) tardily filed under section 501(a) of this title [11 USCS § 501(a)], if--
(i) the creditor that holds such claim did not have notice or actual knowledge of the case in time for timely filing of a proof of such claim under section 501(a) of this title [11 USCS § 501(a)]; and
(3) third, in payment of any allowed unsecured claim proof of which is tardily filed under section 501(a) of this title [11 USCS § 501(a)] other than a claim of the kind specified in paragraph (2)(C) of this subsection;
(b) Payment on claims of a kind specified in paragraph (1), (2), (3), (4), (5), (6), (7), or (8) of section 507(a) of this title [11 USCS § 507(a)], or in paragraph (2), (3), (4), or (5) of subsection (a) of this section, shall be made pro rata among claims of the kind specified in each such particular paragraph, except that in a case that has been converted to this chapter [11 USCS §§ 701 et seq.] under section 1112, 1208, or 1307 of this title [11 USCS § 1112, 1208, or 1307], a claim allowed under section 503(b) of this title [11 USCS § 503(b)] incurred under this chapter [11 USCS §§ 701 et seq.] after such conversion has priority over a claim allowed under section 503(b) of this title [11 USCS § 503(b)] incurred under any other chapter of this title or under this chapter [11 USCS §§ 701 et seq.] before such conversion and over any expenses of a custodian superseded under section 543 of this title [11 USCS § 543].
(c) Notwithstanding subsections (a) and (b) of this section, if there is property of the kind specified in section 541(a)(2) of this title [11 USCS § 541(a)(2)], or proceeds of such property, in the estate, such property or proceeds shall be segregated from other property of the estate, and such property or proceeds and other property of the estate shall be distributed as follows:
(1) Claims allowed under section 503 of this title [11 USCS § 503] shall be paid either from property of the kind specified in section 541(a)(2) of this title [11 USCS § 541(a)(2)], or from other property of the estate, as the interest of justice requires.
(2) Allowed claims, other than claims allowed under section 503 of this title [11 USCS § 503], shall be paid in the order specified in subsection (a) of this section, and, with respect to claims of a kind specified in a particular paragraph of section 507 of this title [11 USCS § 507] or subsection (a) of this section, in the following order and manner:
(A) First, community claims against the debtor or the debtor's spouse shall be paid from property of the kind specified in section 541(a)(2) of this title [11 USCS § 541(a)(2)], except to the extent that such property is solely liable for debts of the debtor.
(B) Second, to the extent that community claims against the debtor are not paid under subparagraph (A) of this paragraph, such community claims shall be paid from property of the kind specified in section 541(a)(2) of this title [11 USCS § 541(a)(2)] that is solely liable for debts of the debtor.
(C) Third, to the extent that all claims against the debtor including community claims against the debtor are not paid under subparagraph (A) or (B) of this paragraph such claims shall be paid from property of the estate other than property of the kind specified in section 541(a)(2) of this title [11 USCS § 541(a)(2)].