11 U.S.C. § 1202 — Trustee

Page 295 TITLE 11—BANKRUPTCY § 1202 were to continue to be governed under the laws applica- ble to such cases, matters, and proceedings as if this chapter had not been repealed, see section 302(f) of Pub. L. 99–554, as amended, formerly set out in an Effective Date of 1986 Amendment note under section 581 of Title 28, Judiciary and Judicial Procedure. § 1202. Trustee (a) If the United States trustee has appointed an individual under section 586(b) of title 28 to serve as standing trustee in cases under this chapter and if such individual qualifies as a trustee under section 322 of this title, then such individual shall serve as trustee in any case filed under this chapter. Otherwise, the United States trustee shall appoint one disinterested person to serve as trustee in the case or the United States trustee may serve as trustee in the case if nec- essary. (b) The trustee shall— (1) perform the duties specified in sections 704(a)(2), 704(a)(3), 704(a)(5), 704(a)(6), 704(a)(7), and 704(a)(9) of this title; (2) perform the duties specified in section 1106(a)(3) and 1106(a)(4) of this title if the court, for cause and on request of a party in interest, the trustee, or the United States trustee, so orders; (3) appear and be heard at any hearing that concerns— (A) the value of property subject to a lien; (B) confirmation of a plan; (C) modification of the plan after con- firmation; or (D) the sale of property of the estate; (4) ensure that the debtor commences mak- ing timely payments required by a confirmed plan; (5) if the debtor ceases to be a debtor in pos- session, perform the duties specified in sec- tions 704(a)(8), 1106(a)(1), 1106(a)(2), 1106(a)(6), 1106(a)(7), and 1203; and (6) if with respect to the debtor there is a claim for a domestic support obligation, pro- vide the applicable notice specified in sub- section (c). (c)(1) In a case described in subsection (b)(6) to which subsection (b)(6) applies, the trustee shall— (A)(i) provide written notice to the holder of the claim described in subsection (b)(6) of such claim and of the right of such holder to use the services of the State child support enforce- ment agency established under sections 464 and 466 of the Social Security Act for the State in which such holder resides, for assist- ance in collecting child support during and after the case under this title; and (ii) include in the notice provided under clause (i) the address and telephone number of such State child support enforcement agency; (B)(i) provide written notice to such State child support enforcement agency of such claim; and (ii) include in the notice provided under clause (i) the name, address, and telephone number of such holder; and (C) at such time as the debtor is granted a discharge under section 1228, provide written notice to such holder and to such State child support enforcement agency of— (i) the granting of the discharge; (ii) the last recent known address of the debtor; (iii) the last recent known name and ad- dress of the debtor’s employer; and (iv) the name of each creditor that holds a claim that— (I) is not discharged under paragraph (2), (4), or (14A) of section 523(a); or (II) was reaffirmed by the debtor under section 524(c). (2)(A) The holder of a claim described in sub- section (b)(6) or the State child support enforce- ment agency of the State in which such holder resides may request from a creditor described in paragraph (1)(C)(iv) the last known address of the debtor. (B) Notwithstanding any other provision of law, a creditor that makes a disclosure of a last known address of a debtor in connection with a request made under subparagraph (A) shall not be liable by reason of making that disclosure. (Added and amended Pub. L. 99–554, title II, §§ 227, 255, title III, § 302(f), Oct. 27, 1986, 100 Stat. 3103, 3106, 3124; Pub. L. 103–65, § 1, Aug. 6, 1993, 107 Stat. 311; Pub. L. 105–277, div. C, title I, § 149(a), Oct. 21, 1998, 112 Stat. 2681–610; Pub. L. 106–5, § 1(1), (2), Mar. 30, 1999, 113 Stat. 9; Pub. L. 106–70, § 1, Oct. 9, 1999, 113 Stat. 1031; Pub. L. 107–8, § 1, May 11, 2001, 115 Stat. 10; Pub. L. 107–17, § 1, June 26, 2001, 115 Stat. 151; Pub. L. 107–170, § 1, May 7, 2002, 116 Stat. 133; Pub. L. 107–171, title X, § 10814(a), May 13, 2002, 116 Stat. 532; Pub. L. 107–377, § 2(a), Dec. 19, 2002, 116 Stat. 3115; Pub. L. 108–73, § 2(a), Aug. 15, 2003, 117 Stat. 891; Pub. L. 108–369, § 2(a), Oct. 25, 2004, 118 Stat. 1749; Pub. L. 109–8, title II, § 219(c), title X, § 1001(a)(1), (c), Apr. 20, 2005, 119 Stat. 57, 185, 186; Pub. L. 111–327, § 2(a)(38), Dec. 22, 2010, 124 Stat. 3561.) Editorial Notes REFERENCES IN TEXT Sections 464 and 466 of the Social Security Act, re- ferred to in subsec. (c)(1)(A)(i), are classified to sections 664 and 666, respectively, of Title 42, The Public Health and Welfare. CODIFICATION For repeal of section effective Oct. 1, 1998, and subse- quent reenactment of section, see note set out pre- ceding section 1201 of this title. AMENDMENTS 2010—Subsec. (b)(1). Pub. L. 111–327, § 2(a)(38)(A), sub- stituted ‘‘704(a)(2), 704(a)(3), 704(a)(5), 704(a)(6), 704(a)(7), and 704(a)(9)’’ for ‘‘704(2), 704(3), 704(5), 704(6), 704(7), and 704(9)’’. Subsec. (b)(5). Pub. L. 111–327, § 2(a)(38)(B), substituted ‘‘704(a)(8)’’ for ‘‘704(8)’’. 2005—Subsec. (b)(6). Pub. L. 109–8, § 219(c)(1), added par. (6). Subsec. (c). Pub. L. 109–8, § 219(c)(2), added subsec. (c). 1986—Subsecs. (c), (d). Pub. L. 99–554, § 227, struck out subsecs. (c) and (d) which read as follows: ‘‘(c) If the number of cases under this chapter com- menced in a particular judicial district so warrants, the court may appoint one or more individuals to serve as standing trustee for such district in cases under this chapter. ‘‘(d)(1) A court that has appointed an individual under subsection (a) of this section to serve as standing trustee in cases under this chapter shall set for such in- dividual— Page 296 TITLE 11—BANKRUPTCY § 1203 ‘‘(A) a maximum annual compensation not to ex- ceed the lowest annual rate of basic pay in effect for grade GS–16 of the General Schedule prescribed under section 5332 of title 5; and ‘‘(B) a percentage fee not to exceed the sum of— ‘‘(i) not to exceed ten percent of the payments made under the plan of such debtor, with respect to payments in an aggregate amount not to exceed $450,000; and ‘‘(ii) three percent of payments made under the plan of such debtor, with respect to payments made after the aggregate amount of payments made under the plan exceeds $450,000; based on such maximum annual compensation and the actual, necessary expenses incurred by such indi- vidual as standing trustee. ‘‘(2) Such individual shall collect such percentage fee from all payments under plans in the cases under this chapter for which such individual serves as standing trustee. Such individual shall pay annually to the Treasury— ‘‘(A) any amount by which the actual compensation received by such individual exceeds five percent of all such payments made under plans in cases under this chapter for which such individual serves as standing trustee; and ‘‘(B) any amount by which the percentage fee fixed under paragraph (1)(B) of this subsection for all such cases exceeds— ‘‘(i) such individual’s actual compensation for such cases, as adjusted under subparagraph (A) of this paragraph; plus ‘‘(ii) the actual, necessary expenses incurred by such individual as standing trustee in such cases.’’ See section 586(b) and (e) of Title 28, Judiciary and Ju- dicial Procedure. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2005 AMENDMENT Amendment by section 219(c) of Pub. L. 109–8 effective 180 days after Apr. 20, 2005, and not applicable with re- spect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of this title. EFFECTIVE DATES Permanent reenactment of section effective July 1, 2005, see section 1001(a)(2) of Pub. L. 109–8, set out as a Repeal, Reenactment, and Termination of Chapter note under section 1201 of this title. For effective dates of amendments extending periods for which section was reenacted prior to permanent reenactment, see Effec- tive Date of 1999, 2001, 2002, 2003, and 2004 Amendment notes set out under section 1201 of this title. Section effective 30 days after Oct. 27, 1986, and before the amendment by section 227 of Pub. L. 99–554, see sec- tion 302(c)(2) of Pub. L. 99–554, set out in an Effective Date of 1986 Amendment; Transition and Administra- tive Provisions note under section 581 of Title 28, Judi- ciary and Judicial Procedure. Effective date and applicability of amendment by sec- tion 227 of Pub. L. 99–554 dependent upon the judicial district involved, see section 302(d), (e) of Pub. L. 99–554. REFERENCES IN SUBSECTION (a) TEMPORARILY DEEMED TO BE REFERENCES TO OTHER PROVISIONS Until the amendments made by subtitle A (§§ 201 to 231) of title II of Pub. L. 99–554 become effective in a district and apply to a case, in subsec. (a) of this sec- tion— (1) the first two references to the United States trustee are deemed to be references to the court, and (2) any reference to section 586(b) of Title 28, Judici- ary and Judicial Procedure, is deemed to be a ref- erence to subsec. (c) of this section, see section 302(c)(3)(B), (d), (e) of Pub. L. 99–554, set out in an Effective Date of 1986 Amendment; Transition and Administrative Provisions note under section 581 of Title 28. § 1203. Rights and powers of debtor Subject to such limitations as the court may prescribe, a debtor in possession shall have all the rights, other than the right to compensation under section 330, and powers, and shall perform all the functions and duties, except the duties specified in paragraphs (3) and (4) of section 1106(a), of a trustee serving in a case under chap- ter 11, including operating the debtor’s farm or commercial fishing operation. (Added and amended Pub. L. 99–554, title II, § 255, title III, § 302(f), Oct. 27, 1986, 100 Stat. 3107, 3124; Pub. L. 103–65, § 1, Aug. 6, 1993, 107 Stat. 311; Pub. L. 105–277, div. C, title I, § 149(a), Oct. 21, 1998, 112 Stat. 2681–610; Pub. L. 106–5, § 1(1), (2), Mar. 30, 1999, 113 Stat. 9; Pub. L. 106–70, § 1, Oct. 9, 1999, 113 Stat. 1031; Pub. L. 107–8, § 1, May 11, 2001, 115 Stat. 10; Pub. L. 107–17, § 1, June 26, 2001, 115 Stat. 151; Pub. L. 107–170, § 1, May 7, 2002, 116 Stat. 133; Pub. L. 107–171, title X, § 10814(a), May 13, 2002, 116 Stat. 532; Pub. L. 107–377, § 2(a), Dec. 19, 2002, 116 Stat. 3115; Pub. L. 108–73, § 2(a), Aug. 15, 2003, 117 Stat. 891; Pub. L. 108–369, § 2(a), Oct. 25, 2004, 118 Stat. 1749; Pub. L. 109–8, title X, §§ 1001(a)(1), (c), 1007(c)(2), Apr. 20, 2005, 119 Stat. 185, 186, 188.) Editorial Notes CODIFICATION For repeal of section effective Oct. 1, 1998, and subse- quent reenactment of section, see note set out pre- ceding section 1201 of this title. AMENDMENTS 2005—Pub. L. 109–8, § 1007(c)(2), inserted ‘‘or commer- cial fishing operation’’ after ‘‘farm’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2005 AMENDMENT Amendment by section 1007(c)(2) of Pub. L. 109–8 ef- fective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under sec- tion 101 of this title. EFFECTIVE DATES Permanent reenactment of section effective July 1, 2005, see section 1001(a)(2) of Pub. L. 109–8, set out as a Repeal, Reenactment, and Termination of Chapter note under section 1201 of this title. For effective dates of section and amendments extending periods for which section was reenacted prior to permanent reenactment, see Effective Date and Effective Date of 1999, 2001, 2002, 2003, and 2004 Amendment notes set out under section 1201 of this title. § 1204. Removal of debtor as debtor in possession (a) On request of a party in interest, and after notice and a hearing, the court shall order that the debtor shall not be a debtor in possession for cause, including fraud, dishonesty, incom- petence, or gross mismanagement of the affairs of the debtor, either before or after the com- mencement of the case. (b) On request of a party in interest, and after notice and a hearing, the court may reinstate the debtor in possession.