11 U.S.C. § 924 — List of creditors

Page 231 TITLE 11—BANKRUPTCY § 924 552(a) of Pub. L. 98–353, set out as a note under section 101 of this title. § 922. Automatic stay of enforcement of claims against the debtor (a) A petition filed under this chapter operates as a stay, in addition to the stay provided by section 362 of this title, applicable to all enti- ties, of— (1) the commencement or continuation, in- cluding the issuance or employment of proc- ess, of a judicial, administrative, or other ac- tion or proceeding against an officer or inhab- itant of the debtor that seeks to enforce a claim against the debtor; and (2) the enforcement of a lien on or arising out of taxes or assessments owed to the debt- or. (b) Subsections (c), (d), (e), (f), and (g) of sec- tion 362 of this title apply to a stay under sub- section (a) of this section the same as such sub- sections apply to a stay under section 362(a) of this title. (c) If the debtor provides, under section 362, 364, or 922 of this title, adequate protection of the interest of the holder of a claim secured by a lien on property of the debtor and if, notwith- standing such protection such creditor has a claim arising from the stay of action against such property under section 362 or 922 of this title or from the granting of a lien under section 364(d) of this title, then such claim shall be al- lowable as an administrative expense under sec- tion 503(b) of this title. (d) Notwithstanding section 362 of this title and subsection (a) of this section, a petition filed under this chapter does not operate as a stay of application of pledged special revenues in a manner consistent with section 927 of this title to payment of indebtedness secured by such revenues. (Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2623; Pub. L. 98–353, title III, § 495, July 10, 1984, 98 Stat. 384; Pub. L. 100–597, § 5, Nov. 3, 1988, 102 Stat. 3029.) HISTORICAL AND REVISION NOTES HOUSE REPORT NO. 95–595 The automatic stay provided under section 362 of title 11 is incomplete for a municipality, because there is the possibility of action by a creditor against an offi- cer or inhabitant of the municipality to collect taxes due the municipality. Section 85(e)(1) of current chap- ter IX [section 405(e)(1) of former title 11] stays such ac- tions. Section 922 carries over that protection into the proposed chapter 9. Subsection (b) applies the provi- sions for relief from the stay that apply generally in section 362 to the stay under section 922. Editorial Notes AMENDMENTS 1988—Subsecs. (c), (d). Pub. L. 100–597 added subsecs. (c) and (d). 1984—Subsec. (a)(1). Pub. L. 98–353 substituted ‘‘a ju- dicial’’ for ‘‘judicial’’, and ‘‘action or proceeding’’ for ‘‘proceeding’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1988 AMENDMENT Amendment by Pub. L. 100–597 effective Nov. 3, 1988, but not applicable to any case commenced under this title before that date, see section 12 of Pub. L. 100–597, 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. § 923. Notice There shall be given notice of the commence- ment of a case under this chapter, notice of an order for relief under this chapter, and notice of the dismissal of a case under this chapter. Such notice shall also be published at least once a week for three successive weeks in at least one newspaper of general circulation published with- in the district in which the case is commenced, and in such other newspaper having a general circulation among bond dealers and bondholders as the court designates. (Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2623.) HISTORICAL AND REVISION NOTES LEGISLATIVE STATEMENTS Section 923 of the House amendment represents a compromise with respect to the notice provisions con- tained in comparable provisions of the House bill and Senate amendment. As a general matter, title 11 leaves most procedural issues to be determined by the Rules of Bankruptcy Procedure. Section 923 of the House amendment contains certain important aspects of pro- cedure that have been retained from present law. It is anticipated that the Rules of Bankruptcy Procedure will adopt rules similar to the present rules for chapter IX of the Bankruptcy Act [chapter 9 of former title 11]. HOUSE REPORT NO. 95–595 The notice provisions in section 923 are significantly more sparse than those provided under section 85(d) of chapter IX [section 405(d) of former title 11]. The exact contours of the notice to be given under chapter 9 are left to the Rules. Because the Rules deal with notice in a municipal case (Rule 9–14), and because section 405(d) of title IV of the bill continues those Rules in effect to the extent not inconsistent with the bill, the notice provisions of current law and Rules would continue to apply. § 924. List of creditors The debtor shall file a list of creditors. (Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2623.) HISTORICAL AND REVISION NOTES LEGISLATIVE STATEMENTS Section 924 of the House amendment is derived from section 924 of the House bill with the location of the fil- ing of the list of creditors to be determined by the rules of bankruptcy procedure. The detailed requirements of section 724 [probably should be ‘‘924’’] of the Senate bill are anticipated to be incorporated in the rules of bank- ruptcy procedure. SENATE REPORT NO. 95–989 This section adopts the provision presently contained in section 85(b) of Chapter IX [section 405(b) of former title 11]. A list of creditors, as complete and accurate as practicable, must be filed with the court. HOUSE REPORT NO. 95–595 This section directs the debtor to file a list of credi- tors with the court. A comparable provision is pres- ently contained in section 85(b) of chapter IX [section Page 232 TITLE 11—BANKRUPTCY § 925 405(b) of former title 11]. The Rules, in Rule 9–7, copy the provisions of section 85(b), with additional matter. As noted above, section 405(d) of title IV will continue those Rules in effect. Because the form, time of filing, and nature of the list, are procedural matters that may call for some flexibility, those details have been left to the Rules. § 925. Effect of list of claims A proof of claim is deemed filed under section 501 of this title for any claim that appears in the list filed under section 924 of this title, except a claim that is listed as disputed, contingent, or unliquidated. (Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2623.) HISTORICAL AND REVISION NOTES LEGISLATIVE STATEMENTS Section 925 of the Senate amendment regarding venue and fees has been deleted. SENATE REPORT NO. 95–989 Section 926 [enacted as section 925] follows the policy contained in section 88(a) of the present Act [section 408(a) of former title 11], though certain details are left to the Rules. The language of section 926 is the same as that of proposed 11 U.S.C. 1111, which applies in chapter 11 cases. The list of creditors filed under section 924 is given weight as prima facie evidence of the claims list- ed (except claims that are listed as disputed, contin- gent, or unliquidated), which are deemed filed under section 501, obviating the need for listed creditors to file proofs of claim. § 926. Avoiding powers (a) If the debtor refuses to pursue a cause of action under section 544, 545, 547, 548, 549(a), or 550 of this title, then on request of a creditor, the court may appoint a trustee to pursue such cause of action. (b) A transfer of property of the debtor to or for the benefit of any holder of a bond or note, on account of such bond or note, may not be avoided under section 547 of this title. (Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2623; Pub. L. 100–597, § 6, Nov. 3, 1988, 102 Stat. 3029.) HISTORICAL AND REVISION NOTES LEGISLATIVE STATEMENTS Section 926 of the House amendment is derived from section 928 of the Senate bill. The provision enables creditors to request the court to appoint a trustee to pursue avoiding powers if the debtor refuses to exercise those powers. Section 901 of the House amendment makes a corresponding change to incorporate avoiding powers included in the Senate amendment, but ex- cluded from the House bill. SENATE REPORT NO. 95–989 This section [928 (enacted as section 926)] adopts cur- rent section 85(h) [section 405(h) of former title 11] which provides for a trustee to be appointed for the purpose of pursuing an action under an avoiding power, if the debtor refuses to do so. This section is necessary because a municipality might, by reason of political pressure or desire for future good relations with a par- ticular creditor or class of creditors, make payments to such creditors in the days preceding the petition to the detriment of all other creditors. No change in the elect- ed officials of such a city would automatically occur upon filing of the petition, and it might be very awk- ward for those same officials to turn around and de- mand the return of the payments following the filing of the petition. Hence, the need for a trustee for such pur- pose. The general avoiding powers are incorporated by ref- erence in section 901 and are broader than under cur- rent law. Preference, fraudulent conveyances, and other kinds of transfers will thus be voidable. Incorporated by reference also is the power to accept or reject executory contracts and leases (section 365). Within the definition of executory contracts are collec- tive bargaining agreements between the city and its employees. Such contracts may be rejected despite con- trary State laws. Courts should readily allow the rejec- tion of such contracts where they are burdensome, the rejection will aid in the municipality’s reorganization and in consideration of the equities of each case. On the last point, ‘‘[e]quities in favor of the city in chapter 9 will be far more compelling than the equities in favor of the employer in chapter 11. Onerous employment ob- ligations may prevent a city from balancing its budget for some time. The prospect of an unbalanced budget may preclude judicial confirmation of the plan. Unless a city can reject its labor contracts, lack of funds may force cutbacks in police, fire, sanitation, and welfare services, imposing hardships on many citizens. In addi- tion, because cities in the past have often seemed im- mune to the constraint of ‘‘profitability’’ faced by pri- vate businesses, their wage contracts may be relatively more onerous than those in the private sector.’’ Execu- tory Contracts and Municipal Bankruptcy, 85 Yale L. J. 957, 965 (1976) (footnote omitted). Rejection of the con- tracts may require the municipalities to renegotiate such contracts by state collective bargaining laws. It is intended that the power to reject collective bargaining agreements will pre-empt state termination provisions, but not state collective bargaining laws. Thus, a city would not be required to maintain existing employ- ment terms during the renegotiation period. Editorial Notes AMENDMENTS 1988—Pub. L. 100–597 designated existing provisions as subsec. (a) and added subsec. (b). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1988 AMENDMENT Amendment by Pub. L. 100–597 effective Nov. 3, 1988, but not applicable to any case commenced under this title before that date, see section 12 of Pub. L. 100–597, set out as a note under section 101 of this title. § 927. Limitation on recourse The holder of a claim payable solely from spe- cial revenues of the debtor under applicable non- bankruptcy law shall not be treated as having recourse against the debtor on account of such claim pursuant to section 1111(b) of this title. (Added Pub. L. 100–597, § 7(2), Nov. 3, 1988, 102 Stat. 3029.) Editorial Notes PRIOR PROVISIONS A prior section 927 was renumbered section 930 of this title. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective Nov. 3, 1988, but not applicable to any case commenced under this title before that date, see section 12 of Pub. L. 100–597, set out as an Effective Date of 1988 Amendment note under section 101 of this title.