2003 U.S. Code
Title 11 - BANKRUPTCY
CHAPTER 5 - CREDITORS, THE DEBTOR, AND THE ESTATE
SUBCHAPTER I - CREDITORS AND CLAIMS
Sec. 508 - Effect of distribution other than under this title
View Metadata| Publication Title | United States Code, 2000 Edition, Supplement 3, Title 11 - BANKRUPTCY |
| Category | Bills and Statutes |
| Collection | United States Code |
| SuDoc Class Number | Y 1.2/5: |
| Contained Within | Title 11 - BANKRUPTCY CHAPTER 5 - CREDITORS, THE DEBTOR, AND THE ESTATE SUBCHAPTER I - CREDITORS AND CLAIMS Sec. 508 - Effect of distribution other than under this title |
| Contains | section 508 |
| Date | 2003 |
| Laws in Effect as of Date | January 19, 2004 |
| Positive Law | Yes |
| Disposition | standard |
| Source Credit | Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2585. |
| Statutes at Large Reference | 92 Stat. 2585 |
| Public Law Reference | Public Law 95-598 |
§508. Effect of distribution other than under this title
(a) If a creditor receives, in a foreign proceeding, payment of, or a transfer of property on account of, a claim that is allowed under this title, such creditor may not receive any payment under this title on account of such claim until each of the other holders of claims on account of which such holders are entitled to share equally with such creditor under this title has received payment under this title equal in value to the consideration received by such creditor in such foreign proceeding.
(b) If a creditor of a partnership debtor receives, from a general partner that is not a debtor in a case under chapter 7 of this title, payment of, or a transfer of property on account of, a claim that is allowed under this title and that is not secured by a lien on property of such partner, such creditor may not receive any payment under this title on account of such claim until each of the other holders of claims on account of which such holders are entitled to share equally with such creditor under this title has received payment under this title equal in value to the consideration received by such creditor from such general partner.
(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2585.)
Historical and Revision Notes I74legislative statementsSection 508(b) of the House amendment is new and provides an identical rule with respect to a creditor of a partnership who receives payment from a partner, to that of a creditor of a debtor who receives a payment in a foreign proceeding involving the debtor.
senate report no. 95–989This section prohibits a creditor from receiving any distribution in the bankruptcy case if he has received payment of a portion of his claim in a foreign proceeding, until the other creditors in the bankruptcy case in this country that are entitled to share equally with that creditor have received as much as he has in the foreign proceeding.
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