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Bankruptcy Code

11 U.S.C. 301, et seq.

11 U.S.C. CHAPTER 3 - CASE ADMINISTRATION

SUBCHAPTER I - COMMENCEMENT OF A CASE

Sec.

301. Voluntary cases.

302. Joint cases.

303. Involuntary cases.

304. Cases ancillary to foreign proceedings.

305. Abstention.

306. Limited appearance.

307. United States trustee.

SUBCHAPTER II - OFFICERS

321. Eligibility to serve as trustee.

322. Qualification of trustee.

323. Role and capacity of trustee.

324. Removal of trustee or examiner.

325. Effect of vacancy.

326. Limitation on compensation of trustee.

327. Employment of professional persons.

328. Limitation on compensation of professional persons.

329. Debtor's transactions with attorneys.

330. Compensation of officers.

331. Interim compensation.

SUBCHAPTER III - ADMINISTRATION

341. Meetings of creditors and equity security holders.

342. Notice.

343. Examination of the debtor.

344. Self-incrimination; immunity.

345. Money of estates.

346. Special tax provisions.

347. Unclaimed property.

348. Effect of conversion.

349. Effect of dismissal.

350. Closing and reopening cases.

SUBCHAPTER IV - ADMINISTRATIVE POWERS

361. Adequate protection.

362. Automatic stay.

363. Use, sale, or lease of property.

364. Obtaining credit.

365. Executory contracts and unexpired leases.

366. Utility service.

Sec. 301. Voluntary cases

A voluntary case under a chapter of this title is commenced by

the filing with the bankruptcy court of a petition under such

chapter by an entity that may be a debtor under such chapter. The

commencement of a voluntary case under a chapter of this title

constitutes an order for relief under such chapter.

Sec. 302. Joint cases

(a) A joint case under a chapter of this title is commenced by

the filing with the bankruptcy court of a single petition under

such chapter by an individual that may be a debtor under such

chapter and such individual's spouse. The commencement of a joint

case under a chapter of this title constitutes an order for relief

under such chapter.

(b) After the commencement of a joint case, the court shall

determine the extent, if any, to which the debtors' estates shall

be consolidated.

Sec. 303. Involuntary cases

(a) An involuntary case may be commenced only under chapter 7 or

11 of this title, and only against a person, except a farmer,

family farmer, or a corporation that is not a moneyed, business, or

commercial corporation, that may be a debtor under the chapter

under which such case is commenced.

(b) An involuntary case against a person is commenced by the

filing with the bankruptcy court of a petition under chapter 7 or

11 of this title -

(1) by three or more entities, each of which is either a holder

of a claim against such person that is not contingent as to

liability or the subject of a bona fide dispute, or an indenture

trustee representing such a holder, if such claims aggregate at

least $10,000 more than the value of any lien on property of the

debtor securing such claims held by the holders of such claims;

(2) if there are fewer than 12 such holders, excluding any

employee or insider of such person and any transferee of a

transfer that is voidable under section 544, 545, 547, 548, 549,

or 724(a) of this title, by one or more of such holders that hold

in the aggregate at least $10,000 of such claims;

(3) if such person is a partnership -

(A) by fewer than all of the general partners in such

partnership; or

(B) if relief has been ordered under this title with respect

to all of the general partners in such partnership, by a

general partner in such partnership, the trustee of such a

general partner, or a holder of a claim against such

partnership; or

(4) by a foreign representative of the estate in a foreign

proceeding concerning such person.

the case is dismissed or relief is ordered, a creditor holding an

unsecured claim that is not contingent, other than a creditor

filing under subsection (b) of this section, may join in the

petition with the same effect as if such joining creditor were a

petitioning creditor under subsection (b) of this section.

(d) The debtor, or a general partner in a partnership debtor that

did not join in the petition, may file an answer to a petition

under this section.

(e) After notice and a hearing, and for cause, the court may

require the petitioners under this section to file a bond to

indemnify the debtor for such amounts as the court may later allow

under subsection (i) of this section.

(f) Notwithstanding section 363 of this title, except to the

extent that the court orders otherwise, and until an order for

relief in the case, any business of the debtor may continue to

operate, and the debtor may continue to use, acquire, or dispose of

property as if an involuntary case concerning the debtor had not

been commenced.

(g) At any time after the commencement of an involuntary case

under chapter 7 of this title but before an order for relief in the

case, the court, on request of a party in interest, after notice to

the debtor and a hearing, and if necessary to preserve the property

of the estate or to prevent loss to the estate, may order the

United States trustee to appoint an interim trustee under section

701 of this title to take possession of the property of the estate

and to operate any business of the debtor. Before an order for

relief, the debtor may regain possession of property in the

possession of a trustee ordered appointed under this subsection if

the debtor files such bond as the court requires, conditioned on

the debtor's accounting for and delivering to the trustee, if there

is an order for relief in the case, such property, or the value, as

of the date the debtor regains possession, of such property.

(h) If the petition is not timely controverted, the court shall

order relief against the debtor in an involuntary case under the

chapter under which the petition was filed. Otherwise, after

trial, the court shall order relief against the debtor in an

involuntary case under the chapter under which the petition was

filed, only if -

(1) the debtor is generally not paying such debtor's debts as

such debts become due unless such debts are the subject of a bona

fide dispute; or

(2) within 120 days before the date of the filing of the

petition, a custodian, other than a trustee, receiver, or agent

appointed or authorized to take charge of less than substantially

all of the property of the debtor for the purpose of enforcing a

lien against such property, was appointed or took possession.

(i) If the court dismisses a petition under this section other

than on consent of all petitioners and the debtor, and if the

debtor does not waive the right to judgment under this subsection,

the court may grant judgment -

(1) against the petitioners and in favor of the debtor for -

(A) costs; or

(B) a reasonable attorney's fee; or

(2) against any petitioner that filed the petition in bad

faith, for -

(A) any damages proximately caused by such filing; or

(B) punitive damages.

(j) Only after notice to all creditors and a hearing may the

court dismiss a petition filed under this section -

(1) on the motion of a petitioner;

(2) on consent of all petitioners and the debtor; or

(3) for want of prosecution.

(k) Notwithstanding subsection (a) of this section, an

involuntary case may be commenced against a foreign bank that is

not engaged in such business in the United States only under

chapter 7 of this title and only if a foreign proceeding concerning

such bank is pending.

Sec. 304. Cases ancillary to foreign proceedings

(a) A case ancillary to a foreign proceeding is commenced by the

filing with the bankruptcy court of a petition under this section

by a foreign representative.

(b) Subject to the provisions of subsection (c) of this section,

if a party in interest does not timely controvert the petition, or

after trial, the court may -

(1) enjoin the commencement or continuation of -

(A) any action against -

(i) a debtor with respect to property involved in such

foreign proceeding; or

(ii) such property; or

(B) the enforcement of any judgment against the debtor with

respect to such property, or any act or the commencement or

continuation of any judicial proceeding to create or enforce a

lien against the property of such estate;

(2) order turnover of the property of such estate, or the

proceeds of such property, to such foreign representative; or

(3) order other appropriate relief.

of this section, the court shall be guided by what will best assure

an economical and expeditious administration of such estate,

consistent with -

(1) just treatment of all holders of claims against or

interests in such estate;

(2) protection of claim holders in the United States against

prejudice and inconvenience in the processing of claims in such

foreign proceeding;

(3) prevention of preferential or fraudulent dispositions of

property of such estate;

(4) distribution of proceeds of such estate substantially in

accordance with the order prescribed by this title;

(5) comity; and

(6) if appropriate, the provision of an opportunity for a fresh

start for the individual that such foreign proceeding concerns.

Sec. 305. Abstention

(a) The court, after notice and a hearing, may dismiss a case

under this title, or may suspend all proceedings in a case under

this title, at any time if -

(1) the interests of creditors and the debtor would be better

served by such dismissal or suspension; or

(2)(A) there is pending a foreign proceeding; and

(B) the factors specified in section 304(c) of this title

warrant such dismissal or suspension.

(b) A foreign representative may seek dismissal or suspension

under subsection (a)(2) of this section.

case or suspending all proceedings in a case, or a decision not so

to dismiss or suspend, is not reviewable by appeal or otherwise by

the court of appeals under section 158(d), 1291, or 1292 of title

28 or by the Supreme Court of the United States under section 1254

of title 28.

Sec. 306. Limited appearance

An appearance in a bankruptcy court by a foreign representative

in connection with a petition or request under section 303, 304, or

305 of this title does not submit such foreign representative to

the jurisdiction of any court in the United States for any other

purpose, but the bankruptcy court may condition any order under

section 303, 304, or 305 of this title on compliance by such

foreign representative with the orders of such bankruptcy court.

Sec. 307. United States trustee

The United States trustee may raise and may appear and be heard

on any issue in any case or proceeding under this title but may not

file a plan pursuant to section 1121(c) of this title.

SUBCHAPTER II - OFFICERS

Sec. 321. Eligibility to serve as trustee

(a) A person may serve as trustee in a case under this title only

if such person is -

(1) an individual that is competent to perform the duties of

trustee and, in a case under chapter 7, 12, or 13 of this title,

resides or has an office in the judicial district within which

the case is pending, or in any judicial district adjacent to such

district; or

(2) a corporation authorized by such corporation's charter or

bylaws to act as trustee, and, in a case under chapter 7, 12, or

13 of this title, having an office in at least one of such

districts.

(b) A person that has served as an examiner in the case may not

serve as trustee in the case.

the case is pending is eligible to serve as trustee in the case if

necessary.

Sec. 322. Qualification of trustee

(a) Except as provided in subsection (b)(1), a person selected

under section 701, 702, 703, 1104, 1163, 1202, or 1302 of this

title to serve as trustee in a case under this title qualifies if

before five days after such selection, and before beginning

official duties, such person has filed with the court a bond in

favor of the United States conditioned on the faithful performance

of such official duties.

(b)(1) The United States trustee qualifies wherever such trustee

serves as trustee in a case under this title.

(2) The United States trustee shall determine -

(A) the amount of a bond required to be filed under subsection

(a) of this section; and

(B) the sufficiency of the surety on such bond.

in favor of the United States for any penalty or forfeiture

incurred by the debtor.

(d) A proceeding on a trustee's bond may not be commenced after

two years after the date on which such trustee was discharged.

Sec. 323. Role and capacity of trustee

(a) The trustee in a case under this title is the representative

of the estate.

(b) The trustee in a case under this title has capacity to sue

and be sued.

Sec. 324. Removal of trustee or examiner

(a) The court, after notice and a hearing, may remove a trustee,

other than the United States trustee, or an examiner, for cause.

(b) Whenever the court removes a trustee or examiner under

subsection (a) in a case under this title, such trustee or examiner

shall thereby be removed in all other cases under this title in

which such trustee or examiner is then serving unless the court

orders otherwise.

Sec. 325. Effect of vacancy

A vacancy in the office of trustee during a case does not abate

any pending action or proceeding, and the successor trustee shall

be substituted as a party in such action or proceeding.

Sec. 326. Limitation on compensation of trustee

(a) In a case under chapter 7 or 11, the court may allow

reasonable compensation under section 330 of this title of the

trustee for the trustee's services, payable after the trustee

renders such services, not to exceed 25 percent on the first $5,000

or less, 10 percent on any amount in excess of $5,000 but not in

excess of $50,000, 5 percent on any amount in excess of $50,000 but

not in excess of $1,000,000, and reasonable compensation not to

exceed 3 percent of such moneys in excess of $1,000,000, upon all

moneys disbursed or turned over in the case by the trustee to

parties in interest, excluding the debtor, but including holders of

secured claims.

(b) In a case under chapter 12 or 13 of this title, the court may

not allow compensation for services or reimbursement of expenses of

the United States trustee or of a standing trustee appointed under

section 586(b) of title 28, but may allow reasonable compensation

under section 330 of this title of a trustee appointed under

section 1202(a) or 1302(a) of this title for the trustee's

services, payable after the trustee renders such services, not to

exceed five percent upon all payments under the plan.

aggregate compensation of such persons for such service may not

exceed the maximum compensation prescribed for a single trustee by

subsection (a) or (b) of this section, as the case may be.

(d) The court may deny allowance of compensation for services or

reimbursement of expenses of the trustee if the trustee failed to

make diligent inquiry into facts that would permit denial of

allowance under section 328(c) of this title or, with knowledge of

such facts, employed a professional person under section 327 of

this title.

Sec. 327. Employment of professional persons

(a) Except as otherwise provided in this section, the trustee,

with the court's approval, may employ one or more attorneys,

accountants, appraisers, auctioneers, or other professional

persons, that do not hold or represent an interest adverse to the

estate, and that are disinterested persons, to represent or assist

the trustee in carrying out the trustee's duties under this title.

(b) If the trustee is authorized to operate the business of the

debtor under section 721, 1202, or 1108 of this title, and if the

debtor has regularly employed attorneys, accountants, or other

professional persons on salary, the trustee may retain or replace

such professional persons if necessary in the operation of such

business.

is not disqualified for employment under this section solely

because of such person's employment by or representation of a

creditor, unless there is objection by another creditor or the

United States trustee, in which case the court shall disapprove

such employment if there is an actual conflict of interest.

(d) The court may authorize the trustee to act as attorney or

accountant for the estate if such authorization is in the best

interest of the estate.

(e) The trustee, with the court's approval, may employ, for a

specified special purpose, other than to represent the trustee in

conducting the case, an attorney that has represented the debtor,

if in the best interest of the estate, and if such attorney does

not represent or hold any interest adverse to the debtor or to the

estate with respect to the matter on which such attorney is to be

employed.

(f) The trustee may not employ a person that has served as an

examiner in the case.

Sec. 328. Limitation on compensation of professional persons

(a) The trustee, or a committee appointed under section 1102 of

this title, with the court's approval, may employ or authorize the

employment of a professional person under section 327 or 1103 of

this title, as the case may be, on any reasonable terms and

conditions of employment, including on a retainer, on an hourly

basis, or on a contingent fee basis. Notwithstanding such terms

and conditions, the court may allow compensation different from the

compensation provided under such terms and conditions after the

conclusion of such employment, if such terms and conditions prove

to have been improvident in light of developments not capable of

being anticipated at the time of the fixing of such terms and

conditions.

(b) If the court has authorized a trustee to serve as an attorney

or accountant for the estate under section 327(d) of this title,

the court may allow compensation for the trustee's services as such

attorney or accountant only to the extent that the trustee

performed services as attorney or accountant for the estate and not

for performance of any of the trustee's duties that are generally

performed by a trustee without the assistance of an attorney or

accountant for the estate.

this title, the court may deny allowance of compensation for

services and reimbursement of expenses of a professional person

employed under section 327 or 1103 of this title if, at any time

during such professional person's employment under section 327 or

1103 of this title, such professional person is not a disinterested

person, or represents or holds an interest adverse to the interest

of the estate with respect to the matter on which such professional

person is employed.

Sec. 329. Debtor's transactions with attorneys

(a) Any attorney representing a debtor in a case under this

title, or in connection with such a case, whether or not such

attorney applies for compensation under this title, shall file with

the court a statement of the compensation paid or agreed to be

paid, if such payment or agreement was made after one year before

the date of the filing of the petition, for services rendered or to

be rendered in contemplation of or in connection with the case by

such attorney, and the source of such compensation.

(b) If such compensation exceeds the reasonable value of any such

services, the court may cancel any such agreement, or order the

return of any such payment, to the extent excessive, to -

(1) the estate, if the property transferred -

(A) would have been property of the estate; or

(B) was to be paid by or on behalf of the debtor under a plan

under chapter 11, 12, or 13 of this title; or

(2) the entity that made such payment.

Sec. 330. Compensation of officers

(a)(1) After notice to the parties in interest and the United

States Trustee and a hearing, and subject to sections 326, 328, and

329, the court may award to a trustee, an examiner, a professional

person employed under section 327 or 1103 -

(A) reasonable compensation for actual, necessary services

rendered by the trustee, examiner, professional person, or

attorney and by any paraprofessional person employed by any such

person; and

(B) reimbursement for actual, necessary expenses.

(2) The court may, on its own motion or on the motion of the

United States Trustee, the United States Trustee for the District

or Region, the trustee for the estate, or any other party in

interest, award compensation that is less than the amount of

compensation that is requested.

(3)(A) (FOOTNOTE 1) In determining the amount of reasonable

compensation to be awarded, the court shall consider the nature,

the extent, and the value of such services, taking into account all

relevant factors, including -

(FOOTNOTE 1) So in original.

(A) the time spent on such services;

(B) the rates charged for such services;

of, or beneficial at the time at which the service was rendered

toward the completion of, a case under this title;

(D) whether the services were performed within a reasonable

amount of time commensurate with the complexity, importance, and

nature of the problem, issue, or task addressed; and

(E) whether the compensation is reasonable based on the

customary compensation charged by comparably skilled

practitioners in cases other than cases under this title.

(4)(A) Except as provided in subparagraph (B), the court shall

not allow compensation for -

(i) unnecessary duplication of services; or

(ii) services that were not -

(I) reasonably likely to benefit the debtor's estate; or

(II) necessary to the administration of the case.

(B) In a chapter 12 or chapter 13 case in which the debtor is an

individual, the court may allow reasonable compensation to the

debtor's attorney for representing the interests of the debtor in

connection with the bankruptcy case based on a consideration of the

benefit and necessity of such services to the debtor and the other

factors set forth in this section.

(5) The court shall reduce the amount of compensation awarded

under this section by the amount of any interim compensation

awarded under section 331, and, if the amount of such interim

compensation exceeds the amount of compensation awarded under this

section, may order the return of the excess to the estate.

(6) Any compensation awarded for the preparation of a fee

application shall be based on the level and skill reasonably

required to prepare the application.

(b)(1) There shall be paid from the filing fee in a case under

chapter 7 of this title $45 to the trustee serving in such case,

after such trustee's services are rendered.

(2) The Judicial Conference of the United States -

(A) shall prescribe additional fees of the same kind as

prescribed under section 1914(b) of title 28; and

(B) may prescribe notice of appearance fees and fees charged

against distributions in cases under this title;

to pay $15 to trustees serving in cases after such trustees'

services are rendered. Beginning 1 year after the date of the

enactment of the Bankruptcy Reform Act of 1994, such $15 shall be

paid in addition to the amount paid under paragraph (1).

or 13 of this title the compensation paid to the trustee serving in

the case shall not be less than $5 per month from any distribution

under the plan during the administration of the plan.

(d) In a case in which the United States trustee serves as

trustee, the compensation of the trustee under this section shall

be paid to the clerk of the bankruptcy court and deposited by the

clerk into the United States Trustee System Fund established by

section 589a of title 28.

Sec. 331. Interim compensation

A trustee, an examiner, a debtor's attorney, or any professional

person employed under section 327 or 1103 of this title may apply

to the court not more than once every 120 days after an order for

relief in a case under this title, or more often if the court

permits, for such compensation for services rendered before the

date of such an application or reimbursement for expenses incurred

before such date as is provided under section 330 of this title.

After notice and a hearing, the court may allow and disburse to

such applicant such compensation or reimbursement.

SUBCHAPTER III - ADMINISTRATION

Sec. 341. Meetings of creditors and equity security holders

(a) Within a reasonable time after the order for relief in a case

under this title, the United States trustee shall convene and

preside at a meeting of creditors.

(b) The United States trustee may convene a meeting of any equity

security holders.

under this section including any final meeting of creditors.

(d) Prior to the conclusion of the meeting of creditors or equity

security holders, the trustee shall orally examine the debtor to

ensure that the debtor in a case under chapter 7 of this title is

aware of -

(1) the potential consequences of seeking a discharge in

bankruptcy, including the effects on credit history;

(2) the debtor's ability to file a petition under a different

chapter of this title;

(3) the effect of receiving a discharge of debts under this

title; and

(4) the effect of reaffirming a debt, including the debtor's

knowledge of the provisions of section 524(d) of this title.

Sec. 342. Notice

(a) There shall be given such notice as is appropriate, including

notice to any holder of a community claim, of an order for relief

in a case under this title.

(b) Prior to the commencement of a case under this title by an

individual whose debts are primarily consumer debts, the clerk

shall give written notice to such individual that indicates each

chapter of this title under which such individual may proceed.

under this title, any rule, any applicable law, or any order of the

court, such notice shall contain the name, address, and taxpayer

identification number of the debtor, but the failure of such notice

to contain such information shall not invalidate the legal effect

of such notice.

Sec. 343. Examination of the debtor

The debtor shall appear and submit to examination under oath at

the meeting of creditors under section 341(a) of this title.

Creditors, any indenture trustee, any trustee or examiner in the

case, or the United States trustee may examine the debtor. The

United States trustee may administer the oath required under this

section.

Sec. 344. Self-incrimination; immunity

Immunity for persons required to submit to examination, to

testify, or to provide information in a case under this title may

be granted under part V of title 18.

Sec. 345. Money of estates

(a) A trustee in a case under this title may make such deposit or

investment of the money of the estate for which such trustee serves

as will yield the maximum reasonable net return on such money,

taking into account the safety of such deposit or investment.

(b) Except with respect to a deposit or investment that is

insured or guaranteed by the United States or by a department,

agency, or instrumentality of the United States or backed by the

full faith and credit of the United States, the trustee shall

require from an entity with which such money is deposited or

invested -

(1) a bond -

(A) in favor of the United States;

(B) secured by the undertaking of a corporate surety approved

by the United States trustee for the district in which the case

is pending; and

(i) a proper accounting for all money so deposited or

invested and for any return on such money;

(ii) prompt repayment of such money and return; and

(iii) faithful performance of duties as a depository; or

(2) the deposit of securities of the kind specified in section

9303 of title 31;

unless the court for cause orders otherwise.

authorized to deposit or invest such moneys as may be required

under this section.

Sec. 346. Special tax provisions

(a) Except to the extent otherwise provided in this section,

subsections (b), (c), (d), (e), (g), (h), (i), and (j) of this

section apply notwithstanding any State or local law imposing a

tax, but subject to the Internal Revenue Code of 1986.

(b)(1) In a case under chapter 7, 12, or 11 of this title

concerning an individual, any income of the estate may be taxed

under a State or local law imposing a tax on or measured by income

only to the estate, and may not be taxed to such individual.

Except as provided in section 728 of this title, if such individual

is a partner in a partnership, any gain or loss resulting from a

distribution of property from such partnership, or any distributive

share of income, gain, loss, deduction, or credit of such

individual that is distributed, or considered distributed, from

such partnership, after the commencement of the case is gain, loss,

income, deduction, or credit, as the case may be, of the estate.

(2) Except as otherwise provided in this section and in section

728 of this title, any income of the estate in such a case, and any

State or local tax on or measured by such income, shall be computed

in the same manner as the income and the tax of an estate.

(3) The estate in such a case shall use the same accounting

method as the debtor used immediately before the commencement of

the case.

(c)(1) The commencement of a case under this title concerning a

corporation or a partnership does not effect a change in the status

of such corporation or partnership for the purposes of any State or

local law imposing a tax on or measured by income. Except as

otherwise provided in this section and in section 728 of this

title, any income of the estate in such case may be taxed only as

though such case had not been commenced.

(2) In such a case, except as provided in section 728 of this

title, the trustee shall make any tax return otherwise required by

State or local law to be filed by or on behalf of such corporation

or partnership in the same manner and form as such corporation or

partnership, as the case may be, is required to make such return.

(d) In a case under chapter 13 of this title, any income of the

estate or the debtor may be taxed under a State or local law

imposing a tax on or measured by income only to the debtor, and may

not be taxed to the estate.

(e) A claim allowed under section 502(f) or 503 of this title,

other than a claim for a tax that is not otherwise deductible or a

capital expenditure that is not otherwise deductible, is deductible

by the entity to which income of the estate is taxed unless such

claim was deducted by another entity, and a deduction for such a

claim is deemed to be a deduction attributable to a business.

(f) The trustee shall withhold from any payment of claims for

wages, salaries, commissions, dividends, interest, or other

payments, or collect, any amount required to be withheld or

collected under applicable State or local tax law, and shall pay

such withheld or collected amount to the appropriate governmental

unit at the time and in the manner required by such tax law, and

with the same priority as the claim from which such amount was

withheld was paid.

(g)(1) Neither gain nor loss shall be recognized on a transfer -

(A) by operation of law, of property to the estate;

(B) other than a sale, of property from the estate to the

debtor; or

corporation, of property from the estate to a corporation that is

an affiliate participating in a joint plan with the debtor, or

that is a successor to the debtor under the plan, except that

gain or loss may be recognized to the same extent that such

transfer results in the recognition of gain or loss under section

371 (FOOTNOTE 1) of the Internal Revenue Code of 1986.

(FOOTNOTE 1) See References in Text note below.

(2) The transferee of a transfer of a kind specified in this

subsection shall take the property transferred with the same

character, and with the transferor's basis, as adjusted under

subsection (j)(5) of this section, and holding period.

(h) Notwithstanding sections 728(a) and 1146(a) of this title,

for the purpose of determining the number of taxable periods during

which the debtor or the estate may use a loss carryover or a loss

carryback, the taxable period of the debtor during which the case

is commenced is deemed not to have been terminated by such

commencement.

(i)(1) In a case under chapter 7, 12, or 11 of this title

concerning an individual, the estate shall succeed to the debtor's

tax attributes, including -

(A) any investment credit carryover;

(B) any recovery exclusion;

(D) any foreign tax credit carryover;

(E) any capital loss carryover; and

(F) any claim of right.

(2) After such a case is closed or dismissed, the debtor shall

succeed to any tax attribute to which the estate succeeded under

paragraph (1) of this subsection but that was not utilized by the

estate. The debtor may utilize such tax attributes as though any

applicable time limitations on such utilization by the debtor were

suspended during the time during which the case was pending.

(3) In such a case, the estate may carry back any loss of the

estate to a taxable period of the debtor that ended before the

order for relief under such chapter the same as the debtor could

have carried back such loss had the debtor incurred such loss and

the case under this title had not been commenced, but the debtor

may not carry back any loss of the debtor from a taxable period

that ends after such order to any taxable period of the debtor that

ended before such order until after the case is closed.

(j)(1) Except as otherwise provided in this subsection, income is

not realized by the estate, the debtor, or a successor to the

debtor by reason of forgiveness or discharge of indebtedness in a

case under this title.

(2) For the purposes of any State or local law imposing a tax on

or measured by income, a deduction with respect to a liability may

not be allowed for any taxable period during or after which such

liability is forgiven or discharged under this title. In this

paragraph, ''a deduction with respect to a liability'' includes a

capital loss incurred on the disposition of a capital asset with

respect to a liability that was incurred in connection with the

acquisition of such asset.

(3) Except as provided in paragraph (4) of this subsection, for

the purpose of any State or local law imposing a tax on or measured

by income, any net operating loss of an individual or corporate

debtor, including a net operating loss carryover to such debtor,

shall be reduced by the amount of indebtedness forgiven or

discharged in a case under this title, except to the extent that

such forgiveness or discharge resulted in a disallowance under

paragraph (2) of this subsection.

(4) A reduction of a net operating loss or a net operating loss

carryover under paragraph (3) of this subsection or of basis under

paragraph (5) of this subsection is not required to the extent that

the indebtedness of an individual or corporate debtor forgiven or

discharged -

(A) consisted of items of a deductible nature that were not

deducted by such debtor; or

(B) resulted in an expired net operating loss carryover or

other deduction that -

(i) did not offset income for any taxable period; and

(ii) did not contribute to a net operating loss in or a net

operating loss carryover to the taxable period during or after

which such indebtedness was discharged.

(5) For the purposes of a State or local law imposing a tax on or

measured by income, the basis of the debtor's property or of

property transferred to an entity required to use the debtor's

basis in whole or in part shall be reduced by the lesser of -

(A)(i) the amount by which the indebtedness of the debtor has

been forgiven or discharged in a case under this title; minus

(ii) the total amount of adjustments made under paragraphs (2)

and (3) of this subsection; and

(B) the amount by which the total basis of the debtor's assets

that were property of the estate before such forgiveness or

discharge exceeds the debtor's total liabilities that were

liabilities both before and after such forgiveness or discharge.

(6) Notwithstanding paragraph (5) of this subsection, basis is

not required to be reduced to the extent that the debtor elects to

treat as taxable income, of the taxable period in which

indebtedness is forgiven or discharged, the amount of indebtedness

forgiven or discharged that otherwise would be applied in reduction

of basis under paragraph (5) of this subsection.

(7) For the purposes of this subsection, indebtedness with

respect to which an equity security, other than an interest of a

limited partner in a limited partnership, is issued to the creditor

to whom such indebtedness was owed, or that is forgiven as a

contribution to capital by an equity security holder other than a

limited partner in the debtor, is not forgiven or discharged in a

case under this title -

(A) to any extent that such indebtedness did not consist of

items of a deductible nature; or

(B) if the issuance of such equity security has the same

consequences under a law imposing a tax on or measured by income

to such creditor as a payment in cash to such creditor in an

amount equal to the fair market value of such equity security,

then to the lesser of -

(i) the extent that such issuance has the same such

consequences; and

(ii) the extent of such fair market value.

Sec. 347. Unclaimed property

(a) Ninety days after the final distribution under section 726,

1226, or 1326 of this title in a case under chapter 7, 12, or 13 of

this title, as the case may be, the trustee shall stop payment on

any check remaining unpaid, and any remaining property of the

estate shall be paid into the court and disposed of under chapter

129 of title 28.

(b) Any security, money, or other property remaining 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, or 1225 of this title, as the case may be, becomes the

property of the debtor or of the entity acquiring the assets of the

debtor under the plan, as the case may be.

Sec. 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 relief under the chapter to which the case is converted,

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 commencement of the case, or the order for relief.

(b) Unless the court for cause orders otherwise, in sections

701(a), 727(a)(10), 727(b), 728(a), 728(b), 1102(a), 1110(a)(1),

1121(b), 1121(c), 1141(d)(4), 1146(a), 1146(b), 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 section 706, 1112, 1208, or 1307 of this title

means the conversion of such case to such chapter.

has been converted under section 706, 1112, 1208, or 1307 of this

title, as if the conversion 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 section 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 remains in the possession of or is under the

control of the debtor on the date of conversion; and

(B) valuations of property and of allowed secured claims in the

chapter 13 case shall apply in the converted case, with allowed

secured claims reduced to the extent that they have been paid in

accordance with the chapter 13 plan.

(2) If the debtor converts a case under chapter 13 of this title

to a case under another chapter under this title in bad faith, the

property in the converted case shall consist of the property of the

estate as of the date of conversion.

Sec. 349. Effect of dismissal

(a) Unless the court, for cause, orders otherwise, the dismissal

of a case under this title does not bar the discharge, in a later

case under this title, of debts that were dischargeable in the case

dismissed; nor does the dismissal of a case under this title

prejudice the debtor with regard to the filing of a subsequent

petition under this title, except as provided in section 109(g) of

this title.

(b) Unless the court, for cause, orders otherwise, a dismissal of

a case other than under section 742 of this title -

(1) reinstates -

(A) any proceeding or custodianship superseded under section

543 of this title;

(B) any transfer avoided under section 522, 544, 545, 547,

548, 549, or 724(a) of this title, or preserved under section

510(c)(2), 522(i)(2), or 551 of this title; and

(2) vacates any order, judgment, or transfer ordered, under

section 522(i)(1), 542, 550, or 553 of this title; and

(3) revests the property of the estate in the entity in which

such property was vested immediately before the commencement of

the case under this title.

Sec. 350. Closing and reopening cases

(a) After an estate is fully administered and the court has

discharged the trustee, the court shall close the case.

(b) A case may be reopened in the court in which such case was

closed to administer assets, to accord relief to the debtor, or for

other cause.

SUBCHAPTER IV - ADMINISTRATIVE POWERS

Sec. 361. Adequate protection

When adequate protection is required under section 362, 363, or

364 of this title of an interest of an entity in property, such

adequate protection may be provided by -

(1) requiring the trustee to make a cash payment or periodic

cash payments to such entity, to the extent that the stay under

section 362 of this title, use, sale, or lease under section 363

of this title, or any grant of a lien under section 364 of this

title results in a decrease in the value of such entity's

interest in such property;

(2) providing to such entity an additional or replacement lien

to the extent that such stay, use, sale, lease, or grant results

in a decrease in the value of such entity's interest in such

property; or

(3) granting such other relief, other than entitling such

entity to compensation allowable under section 503(b)(1) of this

title as an administrative expense, as will result in the

realization by such entity of the indubitable equivalent of such

entity's interest in such property.

Sec. 362. Automatic stay

(a) Except as provided in subsection (b) of this section, a

petition filed under section 301, 302, or 303 of this title, or an

application filed under section 5(a)(3) of the Securities Investor

Protection Act of 1970, operates as a stay, applicable to all

entities, of -

(1) the commencement or continuation, including the issuance or

employment of process, of a judicial, administrative, or other

action or proceeding against the debtor that was or could have

been commenced before the commencement of the case under this

title, or to recover a claim against the debtor that arose before

the commencement of the case under this title;

(2) the enforcement, against the debtor or against property of

the estate, of a judgment obtained before the commencement of the

case under this title;

(3) any act to obtain possession of property of the estate or

of property from the estate or to exercise control over property

of the estate;

(4) any act to create, perfect, or enforce any lien against

property of the estate;

(5) any act to create, perfect, or enforce against property of

the debtor any lien to the extent that such lien secures a claim

that arose before the commencement of the case under this title;

(6) any act to collect, assess, or recover a claim against the

debtor that arose before the commencement of the case under this

title;

(7) the setoff of any debt owing to the debtor that arose

before the commencement of the case under this title against any

claim against the debtor; and

(8) the commencement or continuation of a proceeding before the

United States Tax Court concerning the debtor.

(b) The filing of a petition under section 301, 302, or 303 of

this title, or of an application under section 5(a)(3) of the

Securities Investor Protection Act of 1970, does not operate as a

stay -

(1) under subsection (a) of this section, of the commencement

or continuation of a criminal action or proceeding against the

debtor;

(2) under subsection (a) of this section -

(A) of the commencement or continuation of an action or

proceeding for -

(i) the establishment of paternity; or

(ii) the establishment or modification of an order for

alimony, maintenance, or support; or

(B) of the collection of alimony, maintenance, or support

from property that is not property of the estate;

(3) under subsection (a) of this section, of any act to

perfect, or to maintain or continue the perfection of, an

interest in property to the extent that the trustee's rights and

powers are subject to such perfection under section 546(b) of

this title or to the extent that such act is accomplished within

the period provided under section 547(e)(2)(A) of this title;

(4) under paragraph (1), (2), (3), or (6) of subsection (a) of

this section, of the commencement or continuation of an action or

proceeding by a governmental unit or any organization exercising