Bankruptcy Forms: Filing Bankruptcy Chapter 7 Bankruptcy Software Chapter 13

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TITLE 11–BANKRUPTCY

CHAPTER 1–GENERAL PROVISIONS

Sec. 108. Extension of time

 (a) If applicable nonbankruptcy law, an order entered in a 
nonbankruptcy proceeding, or an agreement fixes a period within which 
the debtor may commence an action, and such period has not expired 
before the date of the filing of the petition, the trustee may commence 
such action only before the later of--
        (1) the end of such period, including any suspension of such 
    period occurring on or after the commencement of the case; or
        (2) two years after the order for relief.

    (b) Except as provided in subsection (a) of this section, if 
applicable nonbankruptcy law, an order entered in a nonbankruptcy 
proceeding, or an agreement fixes a period within which the debtor or an 
individual protected under section 1201 or 1301 of this title may file 
any pleading, demand, notice, or proof of claim or loss, cure a default, 
or perform any other similar act, and such period has not expired before 
the date of the filing of the petition, the trustee may only file, cure, 
or perform, as the case may be, before the later of--
        (1) the end of such period, including any suspension of such 
    period occurring on or after the commencement of the case; or
        (2) 60 days after the order for relief.

    (c) Except as provided in section 524 of this title, if applicable 
nonbankruptcy law, an order entered in a nonbankruptcy proceeding, or an 
agreement fixes a period for commencing or continuing a civil action in 
a court other than a bankruptcy court on a claim against the debtor, or 
against an individual with respect to which such individual is protected 
under section 1201 or 1301 of this title, and such period has not 
expired before the date of the filing of the petition, then such period 
does not expire until the later of--
        (1) the end of such period, including any suspension of such 
    period occurring on or after the commencement of the case; or
        (2) 30 days after notice of the termination or expiration of the 
    stay under section 362, 922, 1201, or 1301 of this title, as the 
    case may be, with respect to such claim.

(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2556; Pub. L. 98-353, title III, 
Sec. 424, July 10, 1984, 98 Stat. 369; Pub. L. 99-554, title II, 
Sec. 257(b), Oct. 27, 1986, 100 Stat. 3114.)


                      Historical and Revision Notes

                         legislative statements

    Extension of time: The House amendment adopts section 108(c)(1) of 
the Senate amendment which expressly includes any special suspensions of 
statutes of limitation periods on collection outside bankruptcy when 
assets are under the authority of a court. For example, section 6503(b) 
of the Internal Revenue Code [title 26] suspends collection of tax 
liabilities while the debtor's assets are in the control or custody of a 
court, and for 6 months thereafter. By adopting the language of the 
Senate amendment, the House amendment insures not only that the period 
for collection of the taxes outside bankruptcy will not expire during 
the title 11 proceedings, but also that such period will not expire 
until at least 6 months thereafter, which is the minimum suspension 
period provided by the Internal Revenue Code [title 26].


                        senate report no. 95-989

    Subsections (a) and (b), derived from Bankruptcy Act section 11 
[section 29 of former title 11], permit the trustee, when he steps into 
the shoes of the debtor, an extension of time for filing an action or 
doing some other act that is required to preserve the debtor's rights. 
Subsection (a) extends any statute of limitation for commencing or 
continuing an action by the debtor for two years after the date of the 
order for relief, unless it would expire later. Subsection (b) gives the 
trustee 60 days to take other actions not covered under subsection (a), 
such as filing a pleading, demand, notice, or proof of claim or loss 
(such as an insurance claim), unless the period for doing the relevant 
act expires later than 60 days after the date of the order for relief.
    Subsection (c) extends the statute of limitations for creditors. 
Thus, if a creditor is stayed from commencing or continuing an action 
against the debtor because of the bankruptcy case, then the creditor is 
permitted an additional 30 days after notice of the event by which the 
stay is terminated, whether that event be relief from the automatic stay 
under proposed 11 U.S.C. 362 or 1301, the closing of the bankruptcy case 
(which terminates the stay), or the exception from discharge of the 
debts on which the creditor claims.
    In the case of Federal tax liabilities, the Internal Revenue Code 
[title 26] suspends the statute of limitations on a tax liability of a 
taxpayer from running while his assets are in the control or custody of 
a court and for 6 months thereafter (sec. 6503(b) of the Code [title 
26]). The amendment applies this rule in a title 11 proceeding. 
Accordingly, the statute of limitations on collection of a 
nondischargeable Federal tax liability of a debtor will resume running 
after 6 months following the end of the period during which the debtor's 
assets are in the control or custody of the bankruptcy court. This rule 
will provide the Internal Revenue Service adequate time to collect 
nondischargeable taxes following the end of the title 11 proceedings.


                               Amendments

    1986--Subsec. (b). Pub. L. 99-554, Sec. 257(b)(1), inserted 
reference to section 1201 of this title.
    Subsec. (c). Pub. L. 99-554, Sec. 257(b)(2)(A), inserted reference 
to section 1201 of this title in provisions preceding par. (1).
    Subsec. (c)(2). Pub. L. 99-554, Sec. 257(b)(2)(B), which directed 
the amendment of subsec. (c) by inserting ``1201,'' after ``722,'' was 
executed to par. (2) by inserting ``1201,'' after ``922,'' as the 
probable intent of Congress.
    1984--Subsec. (a). Pub. L. 98-353, Sec. 424(b), inserted 
``nonbankruptcy'' after ``applicable'' and ``entered in a'' in 
provisions preceding par. (1).
    Subsec. (a)(1). Pub. L. 98-353, Sec. 424(a), substituted ``or'' for 
``and'' after the semicolon.
    Subsec. (b). Pub. L. 98-353, Sec. 424(b), inserted ``nonbankruptcy'' 
after ``applicable'' and ``entered in a'' in provisions preceding par. 
(1).
    Subsec. (b)(1). Pub. L. 98-353, Sec. 424(a), substituted ``or'' for 
``and'' after the semicolon.
    Subsec. (c). Pub. L. 98-353, Sec. 424(b), inserted ``nonbankruptcy'' 
after ``applicable'' and ``entered in a'' in provisions preceding par. 
(1).
    Subsec. (c)(1). Pub. L. 98-353, Sec. 424(a), substituted ``or'' for 
``and'' after the semicolon.


                    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.


                    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.

                  Section Referred to in Other Sections

    This section is referred to in section 106 of this title.
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Legal Resource Center: United States Code TITLE 11 Filing Bankruptcy Forms Software