Bankruptcy Forms: Filing Bankruptcy Chapter 7 Bankruptcy Software Chapter 13

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TITLE 11–BANKRUPTCY

CHAPTER 11– REORGANIZATION

Sub Chapter II – The Plan

Sec. 1127. Modification of plan

   (a) The proponent of a plan may modify such plan at any time before 
confirmation, but may not modify such plan so that such plan as modified 
fails to meet the requirements of sections 1122 and 1123 of this title. 
After the proponent of a plan files a modification of such plan with the 
court, the plan as modified becomes the plan.
    (b) The proponent of a plan or the reorganized debtor may modify 
such plan at any time after confirmation of such plan and before 
substantial consummation of such plan, but may not modify such plan so 
that such plan as modified fails to meet the requirements of sections 
1122 and 1123 of this title. Such plan as modified under this subsection 
becomes the plan only if circumstances warrant such modification and the 
court, after notice and a hearing, confirms such plan as modified, under 
section 1129 of this title.
    (c) The proponent of a modification shall comply with section 1125 
of this title with respect to the plan as modified.
    (d) Any holder of a claim or interest that has accepted or rejected 
a plan is deemed to have accepted or rejected, as the case may be, such 
plan as modified, unless, within the time fixed by the court, such 
holder changes such holder's previous acceptance or rejection.

(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2635; Pub. L. 98-353, title III, 
Sec. 511, July 10, 1984, 98 Stat. 386.)


                      Historical and Revision Notes

                         legislative statements

    Section 1127(a) of the House amendment adopts a provision contained 
in the House bill permitting only the proponent of a plan to modify the 
plan and rejecting the alternative of open modification contained in the 
Senate amendment.


                        senate report no. 95-989

    Under subsection (a) the proponent may file a proposal to modify a 
plan prior to confirmation. In the case of a public company the 
modifying proposal may be filed prior to approval.
    Subsection (b) provides that a party in interest eligible to file a 
plan may file instead of a plan a proposal to modify a plan filed by 
another. Under subsection (c) a party in interest objecting to some 
feature of a plan may submit a proposal to modify the plan to meet the 
objection.
    After a plan has been confirmed, but before its substantial 
consummation, a plan may be modified by leave of court, which subsection 
(d) provides shall be granted for good cause. Subsection (e) provides 
that a proposal to modify a plan is subject to the disclosure 
requirements of section 1125 and as provided in subsection (f). It 
provides that a creditor or stockholder who voted for or against a plan 
is deemed to have accepted or rejected the modifying proposal. But if 
the modification materially and adversely affects any of their 
interests, they must be afforded an opportunity to change their vote in 
accordance with the disclosure and solicitation requirements of section 
1125.
    Under subsection (g) a plan, if modified prior to confirmation, 
shall be confirmed if it meets the requirements of section 1130.


                         house report no. 95-595

    Subsection (a) permits the proponent of a plan to modify it at any 
time before confirmation, subject, of course, to the requirements of 
sections 1122 and 1123, governing classification and contents of a plan. 
After the proponent of a plan files a modification with the court, the 
plan as modified becomes the plan, and is to be treated the same as an 
original plan.
    Subsection (b) permits modification of a plan after confirmation 
under certain circumstances. The modification must be proposed before 
substantial consummation of the plan. The requirements of sections 1122 
and 1123 continue to apply. The plan as modified under this subsection 
becomes the plan only if the court confirms the plan as modified under 
section 1129 and the circumstances warrant the modification.
    Subsection (c) requires the proponent of a modification to comply 
with the disclosure provisions of section 1125. Of course, if the 
modification were sufficiently minor, the court might determine that 
additional disclosure was not required under the circumstances.
    Subsection (d) simplifies modification procedure by deeming any 
creditor or equity security holder that has already accepted or rejected 
the plan to have accepted or rejected the modification, unless, within 
the time fixed by the court, the creditor or equity security holder 
changes this previous acceptance or rejection.


                               Amendments

    1984--Subsec. (a). Pub. L. 98-353, Sec. 511(a), inserted ``of a 
plan'' after ``After the proponent'', and ``of such plan'' after 
``modification''.
    Subsec. (b). Pub. L. 98-353, Sec. 511(b), substituted 
``circumstances warrant such modification and the court, after notice 
and a hearing, confirms such plan as modified, under section 1129 of 
this title'' for ``the court, after notice and a hearing, confirms such 
plan, as modified, under section 1129 of this title, and circumstances 
warrant such modification''.


                    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 sections 901, 1129 of this title.



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Legal Resource Center: United States Code TITLE 11 Filing Bankruptcy Forms Software