Distributing Funds Under a Plan

U.S Code last checked for updates: Jan 30, 2025

Rule 3021.

(a)

In General.

After confirmation and when any stay under Rule 3020(e) expires, payments under the plan must be distributed to:

• creditors whose claims have been allowed;

• interest holders whose interests have not been disallowed; and

• indenture trustees whose claims under Rule 3003(c)(5) have been allowed.

(b)

Definition of “Creditors” and “Interest Holders.”

In this Rule 3021:

(1)

“creditors” include record holders of bonds, debentures, notes, and other debt securities as of the initial distribution date, unless the plan or confirmation order states a different date; and

(2)

“interest holders” include record holders of stock and other equity securities as of the initial distribution date, unless the plan or confirmation order states a different date.

(As amended Apr. 11, 1997, eff. Dec. 1, 1997; Apr. 26, 1999, eff. Dec. 1, 1999; Apr. 2, 2024, eff. Dec. 1, 2024.)