11 U.S.C. § 347 — Unclaimed property

Page 70 TITLE 11—BANKRUPTCY § 347 1 So in original. See 2019 Amendment note below. 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. § 347. Unclaimed property (a) Ninety days after the final distribution under section 726, 1194, 1226, or 1326 of this title in a case under chapter 7, subchapter V of chap- ter 11, 12, or 13 1 of this title, as the case may be, the trustee shall stop payment on any check re- maining unpaid, and any remaining property of the estate shall be paid into the court and dis- posed of under chapter 129 of title 28. (b) Any security, money, or other property re- maining unclaimed at the expiration of the time allowed in a case under chapter 9, 11, or 12 of this title for the presentation of a security or the performance of any other act as a condition to participation in the distribution under any plan confirmed under section 943(b), 1129, 1173, 1191, or 1225 of this title, as the case may be, be- comes the property of the debtor or of the entity acquiring the assets of the debtor under the plan, as the case may be. (Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2568; Pub. L. 99–554, title II, § 257(h), Oct. 27, 1986, 100 Stat. 3114; Pub. L. 116–54, § 4(a)(5), Aug. 23, 2019, 133 Stat. 1086; Pub. L. 116–136, div. A, title I, § 1113(a)(4)(B), Mar. 27, 2020, 134 Stat. 311.) HISTORICAL AND REVISION NOTES LEGISLATIVE STATEMENTS Section 347(a) of the House amendment adopts a com- parable provision contained in the Senate amendment instructing the trustee to stop payment on any check remaining unpaid more than 90 days after the final dis- tribution in a case under Chapter 7 or 13. Technical changes are made in section 347(b) to cover distribu- tions in a railroad reorganization. SENATE REPORT NO. 95–989 Section 347 is derived from Bankruptcy Act § 66 [sec- tion 106 of former title 11]. Subsection (a) requires the trustee to stop payment on any distribution check that is unpaid 90 days after the final distribution in a case under chapter 7 or 13. The unclaimed funds, and any other property of the estate are paid into the court and disposed of under chapter 129 [§ 2041 et seq.] of title 28, which requires the clerk of court to hold the funds for their owner for 5 years, after which they escheat to the Treasury. Subsection (b) specifies that any property remaining unclaimed at the expiration of the time allowed in a chapter 9 or 11 case for presentation (exchange) of secu- rities or the performance of any other act as a condi- tion to participation in the plan reverts to the debtor or the entity acquiring the assets of the debtor under the plan. Conditions to participation under a plan in- clude such acts as cashing a check, surrendering securi- ties for cancellation, and so on. Similar provisions are found in sections 96(d) and 205 of current law [sections 416(d) and 605 of former title 11]. Editorial Notes AMENDMENTS 2020—Subsec. (b). Pub. L. 116–136 substituted ‘‘1191’’ for ‘‘1194’’. 2019—Subsec. (a). Pub. L. 116–54, § 4(a)(5)(A), inserted ‘‘1194,’’ after ‘‘726,’’ and ‘‘subchapter V of chapter 11,’’ after ‘‘chapter 7,’’. Subsec. (b). Pub. L. 116–54, § 4(a)(5)(B), inserted ‘‘1194,’’ after ‘‘1173,’’. 1986—Subsec. (a). Pub. L. 99–554, § 257(h)(1), inserted references to section 1226 and chapter 12 of this title. Subsec. (b). Pub. L. 99–554, § 257(h)(2), inserted ref- erences to chapter 12 and section 1225 of this title. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2019 AMENDMENT Amendment by Pub. L. 116–54 effective 180 days after Aug. 23, 2019, see section 5 of Pub. L. 116–54, set out as a note under section 101 of this title. EFFECTIVE DATE OF 1986 AMENDMENT Amendment by Pub. L. 99–554 effective 30 days after Oct. 27, 1986, but not applicable to cases commenced under this title before that date, see section 302(a), (c)(1) of Pub. L. 99–554, set out as a note under section 581 of Title 28, Judiciary and Judicial Procedure. § 348. Effect of conversion (a) Conversion of a case from a case under one chapter of this title to a case under another chapter of this title constitutes an order for re- lief under the chapter to which the case is con- verted, but, except as provided in subsections (b) and (c) of this section, does not effect a change in the date of the filing of the petition, the com- mencement of the case, or the order for relief. (b) Unless the court for cause orders other- wise, in sections 701(a), 727(a)(10), 727(b), 1102(a), 1110(a)(1), 1121(b), 1121(c), 1141(d)(4), 1201(a), 1221, 1228(a), 1301(a), and 1305(a) of this title, ‘‘the order for relief under this chapter’’ in a chapter to which a case has been converted under sec- tion 706, 1112, 1208, or 1307 of this title means the conversion of such case to such chapter. (c) Sections 342 and 365(d) of this title apply in a case that has been converted under section 706, 1112, 1208, or 1307 of this title, as if the conver- sion order were the order for relief. (d) A claim against the estate or the debtor that arises after the order for relief but before conversion in a case that is converted under sec- tion 1112, 1208, or 1307 of this title, other than a claim specified in section 503(b) of this title, shall be treated for all purposes as if such claim had arisen immediately before the date of the filing of the petition. (e) Conversion of a case under section 706, 1112, 1208, or 1307 of this title terminates the service of any trustee or examiner that is serving in the case before such conversion. (f)(1) Except as provided in paragraph (2), when a case under chapter 13 of this title is converted to a case under another chapter under this title— (A) property of the estate in the converted case shall consist of property of the estate, as of the date of filing of the petition, that re- mains in the possession of or is under the con- trol of the debtor on the date of conversion; (B) valuations of property and of allowed se- cured claims in the chapter 13 case shall apply only in a case converted to a case under chap- ter 11 or 12, but not in a case converted to a case under chapter 7, with allowed secured claims in cases under chapters 11 and 12 re- duced to the extent that they have been paid in accordance with the chapter 13 plan; and (C) with respect to cases converted from chapter 13—