Bankruptcy Forms: Filing Bankruptcy Chapter 7 Bankruptcy Software Chapter 13

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TITLE 11–BANKRUPTCY

CHAPTER 11– REORGANIZATION

Sub Chapter – Officers and Administration

Sec. 1106. Duties of trustee and examiner

 (a) A trustee shall--
        (1) perform the duties of a trustee specified in sections 
    704(2), 704(5), 704(7), 704(8), and 704(9) of this title;
        (2) if the debtor has not done so, file the list, schedule, and 
    statement required under section 521(1) of this title;
        (3) except to the extent that the court orders otherwise, 
    investigate the acts, conduct, assets, liabilities, and financial 
    condition of the debtor, the operation of the debtor's business and 
    the desirability of the continuance of such business, and any other 
    matter relevant to the case or to the formulation of a plan;
        (4) as soon as practicable--
            (A) file a statement of any investigation conducted under 
        paragraph (3) of this subsection, including any fact ascertained 
        pertaining to fraud, dishonesty, incompetence, misconduct, 
        mismanagement, or irregularity in the management of the affairs 
        of the debtor, or to a cause of action available to the estate; 
        and
            (B) transmit a copy or a summary of any such statement to 
        any creditors' committee or equity security holders' committee, 
        to any indenture trustee, and to such other entity as the court 
        designates;

        (5) as soon as practicable, file a plan under section 1121 of 
    this title, file a report of why the trustee will not file a plan, 
    or recommend conversion of the case to a case under chapter 7, 12, 
    or 13 of this title or dismissal of the case;
        (6) for any year for which the debtor has not filed a tax return 
    required by law, furnish, without personal liability, such 
    information as may be required by the governmental unit with which 
    such tax return was to be filed, in light of the condition of the 
    debtor's books and records and the availability of such information; 
    and
        (7) after confirmation of a plan, file such reports as are 
    necessary or as the court orders.

    (b) An examiner appointed under section 1104(d) of this title shall 
perform the duties specified in paragraphs (3) and (4) of subsection (a) 
of this section, and, except to the extent that the court orders 
otherwise, any other duties of the trustee that the court orders the 
debtor in possession not to perform.

(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2628; Pub. L. 98-353, title III, 
Secs. 311(b)(1), 502, July 10, 1984, 98 Stat. 355, 384; Pub. L. 99-554, 
title II, Sec. 257(c), Oct. 27, 1986, 100 Stat. 3114; Pub. L. 103-394, 
title II, Sec. 211(b), Oct. 22, 1994, 108 Stat. 4125.)


                      Historical and Revision Notes

                        senate report no. 95-989

    Subsection (a) of this section prescribes the trustee's duties. He 
is required to perform the duties of a trustee in a liquidation case 
specified in section 704 (2), (4), (6), (7), (8), and (9). These include 
reporting and informational duties, and accountability for all property 
received. Paragraph (2) of this subsection requires the trustee to file 
with the court, if the debtor has not done so, the list of creditors, 
schedule of assets and liabilities, and statement of affairs required 
under section 521(1).
    Paragraph (3) of S. 1106 requires the trustee to investigate the 
acts, conduct, assets, liabilities, and financial condition of the 
debtor, the operation of the debtor's business, and the desirability of 
the continuance of the business, and any other matter relevant to the 
case or to the formulation of a plan. Paragraph (4) requires the trustee 
to report the results of his investigation to the court and to 
creditors' committees, equity security holders' committees, indenture 
trustees and any other entity the court designates.
    Paragraph (5) requires the trustee to file a plan or to report why a 
plan cannot be formulated, or to recommend conversion to liquidation or 
to an individual repayment plan case, or dismissal. It is anticipated 
that the trustee will consult with creditors and other parties in 
interest in the formulation of a plan, just as the debtor in possession 
would.
    Paragraph (6) [enacted as (7)] requires final reports by the 
trustee, as the court orders.
    Subsection (b) gives the trustee's investigative duties to an 
examiner, if one is appointed. The court is authorized to give the 
examiner additional duties as the circumstances warrant.
    Paragraphs (3), (4), and (5) of subsection (a) are derived from 
sections 165 and 169 of chapter X [sections 565 and 569 of former title 
11].


                               Amendments

    1994--Subsec. (b). Pub. L. 103-394 substituted ``1104(d)'' for 
``1104(c)''.
    1986--Subsec. (a)(5). Pub. L. 99-554 inserted reference to chapter 
12.
    1984--Subsec. (a)(1). Pub. L. 98-353, Sec. 311(b)(1), substituted 
``704(5), 704(7), 704(8), and 704(9)'' for ``704(4), 704(6), 704(7) and 
704(8)''.
    Subsec. (b). Pub. L. 98-353, Sec. 502, inserted ``, except to the 
extent that the court orders otherwise,''.


                    Effective Date of 1994 Amendment

    Amendment by Pub. L. 103-394 effective Oct. 22, 1994, and not 
applicable with respect to cases commenced under this title before Oct. 
22, 1994, see section 702 of Pub. L. 103-394, 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.


                    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.


         Payment of Certain Benefits to Retired Former Employees

    Pub. L. 99-500, Sec. 101(b) [title VI, Sec. 608], Oct. 18, 1986, 100 
Stat. 1783-39, 1783-74, and Pub. L. 99-591, Sec. 101(b) [title VI, 
Sec. 608], Oct. 30, 1986, 100 Stat. 3341-39, 3341-74, as amended by Pub. 
L. 100-41, May 15, 1987, 101 Stat. 309; Pub. L. 100-99, Aug. 18, 1987, 
101 Stat. 716; Pub. L. 100-334, Sec. 3(a), June 16, 1988, 102 Stat. 613, 
provided that:
    ``(a)(1) Subject to paragraphs (2), (3), (4), and (5), and 
notwithstanding title 11 of the United States Code, the trustee shall 
pay benefits to retired former employees under a plan, fund, or program 
maintained or established by the debtor prior to filing a petition 
(through the purchase of insurance or otherwise) for the purpose of 
providing medical, surgical, or hospital care benefits, or benefits in 
the event of sickness, accident, disability, or death.
    ``(2) The level of benefits required to be paid by this subsection 
may be modified prior to confirmation of a plan under section 1129 of 
such title if--
        ``(A) the trustee and an authorized representative of the former 
    employees with respect to whom such benefits are payable agree to 
    the modification of such benefit payments; or
        ``(B) the court finds that a modification proposed by the 
    trustee meets the standards of section 1113(b)(1)(A) of such title 
    and the balance of the equities clearly favors the modification.
If such benefits are covered by a collective bargaining agreement, the 
authorized representative shall be the labor organization that is 
signatory to such collective bargaining agreement unless there is a 
conflict of interest.
    ``(3) The trustee shall pay benefits in accordance with this 
subsection until--
        ``(A) the dismissal of the case involved; or
        ``(B) the effective date of a plan confirmed under section 1129 
    of such title which provides for the continued payment after 
    confirmation of the plan of all such benefits at the level 
    established under paragraph (2) of this subsection, at any time 
    prior to the confirmation of the plan, for the duration of the 
    period the debtor (as defined in such title) has obligated itself to 
    provide such benefits.
    ``(4) No such benefits paid between the filing of a petition in a 
case covered by this section and the time a plan confirmed under section 
1129 of such title with respect to such case becomes effective shall be 
deducted or offset from the amount allowed as claims for any benefits 
which remain unpaid, or from the amount to be paid under the plan with 
respect to such claims for unpaid benefits, whether such claims for 
unpaid benefits are based upon or arise from a right to future benefits 
or from any benefit not paid as a result of modifications allowed 
pursuant to this section.
    ``(5) No claim for benefits covered by this section shall be limited 
by section 502(b)(7) of such title.
    ``(b)(1) Notwithstanding any provision of title 11 of the United 
States Code, the trustee shall pay an allowable claim of any person for 
a benefit paid--
        ``(A) before the filing of the petition under title 11 of the 
    United States Code; and
        ``(B) directly or indirectly to a retired former employee under 
    a plan, fund, or program described in subsection (a)(1);
if, as determined by the court, such person is entitled to recover from 
such employee, or any provider of health care to such employee, directly 
or indirectly, the amount of such benefit for which such person receives 
no payment from the debtor.
    ``(2) For purposes of paragraph (1), the term `provider of health 
care' means a person who--
        ``(A) is the direct provider of health care (including a 
    physician, dentist, nurse, podiatrist, optometrist, physician 
    assistant, or ancillary personnel employed under the supervision of 
    a physician); or
        ``(B) administers a facility or institution (including a 
    hospital, alcohol and drug abuse treatment facility, outpatient 
    facility, or health maintenance organization) in which health care 
    is provided.
    ``(c) This section is effective with respect to cases commenced 
under chapter 11, of title 11, United States Code, in which a plan for 
reorganization has not been confirmed by the court and in which any such 
benefit is still being paid on October 2, 1986, and in cases that become 
subject to chapter 11, title 11, United States Code, after October 2, 
1986 and before the date of the enactment of the Retiree Benefits 
Bankruptcy Protection Act of 1988 [June 16, 1988].
    ``(d) This section shall not apply during any period in which a case 
is subject to chapter 7, title 11, United States Code.''
    Similar provisions were contained in Pub. L. 99-656, Sec. 2, Nov. 
14, 1986, 100 Stat. 3668, as amended by Pub. L. 100-41, May 15, 1987, 
101 Stat. 309; Pub. L. 100-99, Aug. 18, 1987, 101 Stat. 716, and were 
repealed by Pub. L. 100-334, Sec. 3(b), June 16, 1988, 102 Stat. 614.

                  Section Referred to in Other Sections

    This section is referred to in sections 1107, 1111, 1202, 1203, 1301 
of this title.


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