FEDERAL · 11 U.S.C.
Rule 3010. Chapter 7, Subchapter V of Chapter 11, Chapter 12, and Chapter 13— Limits on Small Dividends and Payments
11 U.S.C. § Rule 3010. Chapter 7, Subchapter V of Ch
Title11 — Bankruptcy
PartIII
This text of 11 U.S.C. § Rule 3010. Chapter 7, Subchapter V of Ch (Rule 3010. Chapter 7, Subchapter V of Chapter 11, Chapter 12, and Chapter 13— Limits on Small Dividends and Payments) is published on Counsel Stack Legal Research, covering United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
Bluebook
11 U.S.C. § Rule 3010. Chapter 7, Subchapter V of Ch.
Text
(a)Chapter 7. In a Chapter 7 case, the trustee must not distribute to a creditor any dividend less than $5 unless authorized to do so by local rule or court order. A dividend not distributed must be treated in the same manner as unclaimed funds under §347.
(b)Subchapter V of Chapter 11, Chapter 12, and Chapter 13. In a case under Subchapter V of Chapter 11, or under Chapter 12 or 13, the trustee must not distribute to a creditor any payment less than $15 unless authorized to do so by local rule or court order. Distribution must be made when accumulated funds total $15 or more. Any remaining funds must be distributed with the final payment.
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Related
§ 347
11 U.S.C. § 347
Source Credit
History
(As amended Mar. 30, 1987, eff. Aug. 1, 1987; Apr. 30, 1991, eff. Aug. 1, 1991; Apr. 11, 2022, eff. Dec. 1, 2022; Apr. 2, 2024, eff. Dec. 1, 2024.)
Editorial Notes
Notes of Advisory Committee on Rules—1983
This rule permits a court to eliminate the disproportionate expense and inconvenience incurred by the issuance of a dividend check of less than $5 (or $15 in a chapter 13 case). Creditors are more irritated than pleased to receive such small dividends, but the money is held subject to their specific request as are unclaimed dividends under §347(a) of the Code. When the trustee deposits undistributed dividends pursuant to a direction in accordance with this rule the trustee should file with the clerk a list of the names and addresses, so far as known, of the persons entitled to the money so deposited and the respective amounts payable to them pursuant to Rule 3011. In a chapter 13 case, the small dividend will accumulate and will be payable at the latest, with the final dividend. Local rule or order may change the practice permitted in this rule and, in that connection, the order may be incorporated in the order confirming a chapter 13 plan.
Notes of Advisory Committee on Rules—1991 Amendment
Subdivision (b) is amended to include chapter 12 cases.
Committee Notes on Rules—2022 Amendment
The rule is amended in response to the enactment of the Small Business Reorganization Act of 2019, Pub. L. No. 116–54, 133 Stat. 1079. That law gives a small business debtor the option of electing to be a debtor under subchapter V of chapter 11. To avoid the undue cost and inconvenience of distributing small payments, the title and subdivision (b) are amended to include subchapter V cases.
Committee Notes on Rules—2024 Amendment
The language of Rule 3010 has been amended as part of the general restyling of the Bankruptcy Rules to make them more easily understood and to make style and terminology consistent throughout the rules. These changes are intended to be stylistic only.
This rule permits a court to eliminate the disproportionate expense and inconvenience incurred by the issuance of a dividend check of less than $5 (or $15 in a chapter 13 case). Creditors are more irritated than pleased to receive such small dividends, but the money is held subject to their specific request as are unclaimed dividends under §347(a) of the Code. When the trustee deposits undistributed dividends pursuant to a direction in accordance with this rule the trustee should file with the clerk a list of the names and addresses, so far as known, of the persons entitled to the money so deposited and the respective amounts payable to them pursuant to Rule 3011. In a chapter 13 case, the small dividend will accumulate and will be payable at the latest, with the final dividend. Local rule or order may change the practice permitted in this rule and, in that connection, the order may be incorporated in the order confirming a chapter 13 plan.
Notes of Advisory Committee on Rules—1991 Amendment
Subdivision (b) is amended to include chapter 12 cases.
Committee Notes on Rules—2022 Amendment
The rule is amended in response to the enactment of the Small Business Reorganization Act of 2019, Pub. L. No. 116–54, 133 Stat. 1079. That law gives a small business debtor the option of electing to be a debtor under subchapter V of chapter 11. To avoid the undue cost and inconvenience of distributing small payments, the title and subdivision (b) are amended to include subchapter V cases.
Committee Notes on Rules—2024 Amendment
The language of Rule 3010 has been amended as part of the general restyling of the Bankruptcy Rules to make them more easily understood and to make style and terminology consistent throughout the rules. These changes are intended to be stylistic only.
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Bluebook (online)
11 U.S.C. § Rule 3010. Chapter 7, Subchapter V of Ch, Counsel Stack Legal Research, https://law.counselstack.com/usc/11/Rule 3010. Chapter 7, Subchapter V of Ch.