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11 U.S.C. § 509 — Claims of codebtors
Federal law — U.S. Code and appendices · legal_authorities
**(a)** Except as provided in subsection (b) or (c) of this section, an entity that is liable with the debtor on, or that has secured, a claim of a creditor against the debtor, and that pays such claim, is subrogated to the rights of such creditor to the extent of such payment.
**(b)** Such entity is not subrogated to the rights of such creditor to the extent that—
(1) a claim of such entity for reimbursement or contribution on account of such payment of such creditor’s claim is—
(A) allowed under [section 502 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section502&num=0&edition=prelim);
(B) disallowed other than under [section 502(e) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section502/e&num=0&edition=prelim); or
(C) subordinated under [section 510 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section510&num=0&edition=prelim); or
(2) as between the debtor and such entity, such entity received the consideration for the claim held by such creditor.
**(c)** The court shall subordinate to the claim of a creditor and for the benefit of such creditor an allowed claim, by way of subrogation under this section, or for reimbursement or contribution, of an entity that is liable with the debtor on, or that has secured, such creditor’s claim, until such creditor’s claim is paid in full, either through payments under this title or otherwise.
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Stable record: federal_law:legal_authorities:record_usc_c440028a994ca46284508c22
Source file: Laws/federal/codes/united-states-code/title-11/section-509-claims-of-codebtors--eedfd93676.md
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Source location: Title 11, Chapter 5, § 509; chapter-005-creditors-the-debtor-and-the-estate.md
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**(a)** Except as provided in subsection (b) or (c) of this section, an entity that is liable with the debtor on, or that has secured, a claim of a creditor against the debtor, and that pays such claim, is subrogated to the rights of such creditor to the extent of such payment.
**(b)** Such entity is not subrogated to the rights of such creditor to the extent that—
(1) a claim of such entity for reimbursement or contribution on account of such payment of such creditor’s claim is—
(A) allowed under [section 502 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section502&num=0&edition=prelim);
(B) disallowed other than under [section 502(e) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section502/e&num=0&edition=prelim); or
(C) subordinated under [section 510 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section510&num=0&edition=prelim); or
(2) as between the debtor and such entity, such entity received the consideration for the claim held by such creditor.
**(c)** The court shall subordinate to the claim of a creditor and for the benefit of such creditor an allowed claim, by way of subrogation under this section, or for reimbursement or contribution, of an entity that is liable with the debtor on, or that has secured, such creditor’s claim, until such creditor’s claim is paid in full, either through payments under this title or otherwise.
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Federal law — U.S. Code and appendices · legal_authorities
The debtor shall file a list of creditors.
Source: Supplied U.S. Code snapshot — release unconfirmed · 11 U.S.C. § 924
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Federal law — U.S. Code and appendices · legal_authorities
**(a)** A subordination agreement is enforceable in a case under this title to the same extent that such agreement is enforceable under applicable nonbankruptcy law.
**(b)** For the purpose of distribution under this title, a claim arising from rescission of a purchase or sale of a security of the debtor or of an affiliate of the debtor, for damages arising from the purchase or sale of such a security, or for reimbursement or contribution allowed under section 502 on account of such a claim, shall be subordinated to all claims or interests that are senior to or equal the claim or interest represented by such security, except that if such security is common stock, such claim has the same priority as common stock.
**(c)** Notwithstanding subsections (a) and (b) of this section, after notice and a hearing, the court may—
(1) under principles of equitable subordination, subordinate for purposes of distribution all or part of an allowed claim to all or part of another allowed claim or all or part of an allowed interest to all or part of another allowed interest; or
(2) order that any lien securing such a subordinated claim be transferred to the estate.
Source: Supplied U.S. Code snapshot — release unconfirmed · 11 U.S.C. § 510
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Federal law — U.S. Code and appendices · legal_authorities
In this title the following definitions shall apply:
(1) The term “accountant” means accountant authorized under applicable law to practice public accounting, and includes professional accounting association, corporation, or partnership, if so authorized.
(2) The term “affiliate” means—
(A) entity that directly or indirectly owns, controls, or holds with power to vote, 20 percent or more of the outstanding voting securities of the debtor, other than an entity that holds such securities—
(i) in a fiduciary or agency capacity without sole discretionary power to vote such securities; or
(ii) solely to secure a debt, if such entity has not in fact exercised such power to vote;
(B) corporation 20 percent or more of whose outstanding voting securities are directly or indirectly owned, controlled, or held with power to vote, by the debtor, or by an entity that directly or indirectly owns, controls, or holds with power to vote, 20 percent or more of the outstanding voting securities of the debtor, other than an entity that holds such securities—
(i) in a fiduciary or agency capacity without sole discretionary power to vote such securities; or
(ii) solely to secure a debt, if such entity has not in fact exercised such power to vote;
(C) person whose business is operated under a lease or operating agreement by a debtor, or person substantially all of whose property is operated under an operating agreement with the debtor; or
(D) entity that operates the business or substantially all of the property of the debtor under a lease or operating agreement.
(3) The term “assisted person” means any person whose debts consist primarily of consumer debts and the value of whose nonexempt property is less than $150,000.11 See Adjustment of Dollar Amounts not
Source: Supplied U.S. Code snapshot — release unconfirmed · 11 U.S.C. § 101
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Federal law — U.S. Code and appendices · legal_authorities
**(a)** A claim or interest, proof of which is filed under [section 501 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section501&num=0&edition=prelim), is deemed allowed, unless a party in interest, including a creditor of a general partner in a partnership that is a debtor in a case under chapter 7 of this title, objects.
**(b)** Except as provided in subsections (e)(2), (f), (g), (h) and (i) of this section, if such objection to a claim is made, the court, after notice and a hearing, shall determine the amount of such claim in lawful currency of the United States as of the date of the filing of the petition, and shall allow such claim in such amount, except to the extent that—
(1) such claim is unenforceable against the debtor and property of the debtor, under any agreement or applicable law for a reason other than because such claim is contingent or unmatured;
(2) such claim is for unmatured interest;
(3) if such claim is for a tax assessed against property of the estate, such claim exceeds the value of the interest of the estate in such property;
(4) if such claim is for services of an insider or attorney of the debtor, such claim exceeds the reasonable value of such services;
(5) such claim is for a debt that is unmatured on the date of the filing of the petition and that is excepted from discharge under [section 523(a)(5) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section523/a/5&num=0&edition=prelim);
(6) if such claim is the claim of a lessor for damages resulting from the termination of a lease of real property, such claim exceeds—
(A) the rent reserved by such lease, without acceleration, for the greater of one year, or 15 percent, not to exceed three years, of the remainin
Source: Supplied U.S. Code snapshot — release unconfirmed · 11 U.S.C. § 502
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Federal law — U.S. Code and appendices · legal_authorities
Page 125
TITLE 11—BANKRUPTCY
§ 509
under this title before Oct. 22, 1994, see section 702 of
Pub. L. 103–394, set out as a note under section 101 of
this title.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98–353 effective with respect
to cases filed 90 days after July 10, 1984, see section
552(a) of Pub. L. 98–353, set out as a note under section
101 of this title.
Court Rules and Judicial Documents
ADJUSTMENT OF DOLLAR AMOUNTS
The dollar amounts specified in this section were ad-
justed by notices of the Judicial Conference of the
United States pursuant to section 104 of this title as
follows:
By notice dated Jan. 31, 2022, 87 F.R. 6625, effective
Apr. 1, 2022, in subsec. (a)(4), dollar amount ‘‘13,650’’ was
adjusted to ‘‘15,150’’; in subsec. (a)(5)(B)(i), dollar
amount ‘‘13,650’’ was adjusted to ‘‘15,150’’; in subsec.
(a)(6), dollar amount ‘‘6,725’’ was adjusted to ‘‘7,475’’;
and, in subsec. (a)(7), dollar amount ‘‘3,025’’ was ad-
justed to ‘‘3,350’’. 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. 5, 2019, 84 F.R. 3488, effective
Apr. 1, 2019, in subsec. (a)(4), dollar amount ‘‘12,850’’ was
adjusted to ‘‘13,650’’; in subsec. (a)(5)(B)(i), dollar
amount ‘‘12,850’’ was adjusted to ‘‘13,650’’; in subsec.
(a)(6)(B) [sic], dollar amount ‘‘6,325’’ was adjusted to
‘‘6,725’’; and, in subsec. (a)(7), dollar amount ‘‘2,850’’ was
adjusted to ‘‘3,025’’.
By notice dated Feb. 16, 2016, 81 F.R. 8748, effective
Apr. 1, 2016, in subsec. (a)(4), dollar amount ‘‘12,475’’ was
adjusted to ‘‘12,850’’; in subsec. (a)(5)(B)(i), dollar
amount ‘‘12,475’’ was adjusted to ‘‘12,850’’; in subsec.
(a)(6)(B) [sic], dollar amount ‘‘6,150’’ was adjusted to
‘‘6,325’’; and, in su
Source: Supplied 2024 U.S. Code historical extraction · 11 U.S.C. § 509
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