2010 US 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

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Metadata
Publication TitleUnited States Code, 2006 Edition, Supplement 4, Title 11 - BANKRUPTCY
CategoryBills and Statutes
CollectionUnited States Code
SuDoc Class NumberY 1.2/5:
Contained WithinTitle 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
Containssection 508
Date2010
Laws in Effect as of DateJanuary 7, 2011
Positive LawYes
Dispositionstandard
Source CreditPub. L. 95-598, Nov. 6, 1978, 92 Stat. 2585; Pub. L. 109-8, title VIII, §802(d)(7), Apr. 20, 2005, 119 Stat. 146.
Statutes at Large References92 Stat. 2585
119 Stat. 146
Public Law ReferencesPublic Law 95-598, Public Law 109-8


§508. Effect of distribution other than under this title

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; Pub. L. 109–8, title VIII, §802(d)(7), Apr. 20, 2005, 119 Stat. 146.)

Historical and Revision Notes I74legislative statements

Section 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. 95–989

This 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.

Amendments

2005—Pub. L. 109–8 designated subsec. (b) as entire section and struck out subsec. (a) which read as follows: “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.”

Effective Date of 2005 Amendment

Amendment by Pub. L. 109–8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of this title.

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