---
kind: "range"
citation: "11 U.S.C. §§ 1121–1128"
title: "11"
from: "1121"
to: "1128"
count: 8
release: "119-102"
url: "https://uscodex.org/usc/11/1121..1128"
---

# §1121. Who may file a plan

- (a) The [debtor](/usc/11/101.md?p=13) may file a plan with a [petition](/usc/11/101.md?p=42) commencing a voluntary case, or at any time in a voluntary case or an involuntary case.
- (b) Except as otherwise provided in this section, only the [debtor](/usc/11/101.md?p=13) may file a plan until after 120 days after the date of the [order for relief](/usc/11/102.md?p=6) under this chapter.
- (c) Any party in interest, including the [debtor](/usc/11/101.md?p=13), the [trustee](/usc/11/1502.md?p=6), a [creditors](/usc/11/101.md?p=10)’ committee, an [equity security holders](/usc/11/101.md?p=17)’ committee, a [creditor](/usc/11/101.md?p=10), an [equity security holder](/usc/11/101.md?p=17), or any [indenture trustee](/usc/11/101.md?p=29), may file a plan if and only if—
  - (1) a [trustee](/usc/11/1502.md?p=6) has been appointed under this chapter;
  - (2) the [debtor](/usc/11/101.md?p=13) has not filed a plan before 120 days after the date of the [order for relief](/usc/11/102.md?p=6) under this chapter; or
  - (3) the [debtor](/usc/11/101.md?p=13) has not filed a plan that has been accepted, before 180 days after the date of the [order for relief](/usc/11/102.md?p=6) under this chapter, by each class of [claims](/usc/11/101.md?p=5) or interests that is impaired under the plan.
- (d)
  - (1) Subject to [paragraph (2)](#d-2), on request of a party in interest made within the respective periods specified in subsections [(b)](#b) and [(c)](#c) of this section and after notice and a hearing, the court may for cause reduce or increase the 120-day period or the 180-day period referred to in this section.
  - (2)
    - (A) The 120-day period specified in [paragraph (1)](#d-1) may not be extended beyond a date that is 18 months after the date of the [order for relief](/usc/11/102.md?p=6) under this chapter.
    - (B) The 180-day period specified in [paragraph (1)](#d-1) may not be extended beyond a date that is 20 months after the date of the [order for relief](/usc/11/102.md?p=6) under this chapter.
- (e) In a [small business case](/usc/11/101.md?p=51C)—
  - (1) only the [debtor](/usc/11/101.md?p=13) may file a plan until after 180 days after the date of the [order for relief](/usc/11/102.md?p=6), unless that period is—
    - (A) extended as provided by this subsection, after notice and a hearing; or
    - (B) the court, for cause, orders otherwise;
  - (2) the plan and a disclosure statement (if any) shall be filed not later than 300 days after the date of the [order for relief](/usc/11/102.md?p=6); and
  - (3) the time periods specified in paragraphs [(1)](#e-1) and [(2)](#e-2), and the time fixed in [section 1129(e)](/usc/11/1129.md?p=e) within which the plan shall be confirmed, may be extended only if—
    - (A) the [debtor](/usc/11/101.md?p=13), after providing notice to parties in interest (including the [United States trustee](/usc/11/102.md?p=9)), demonstrates by a preponderance of the evidence that it is more likely than not that the court will confirm a plan within a reasonable period of time;
    - (B) a new deadline is imposed at the time the extension is granted; and
    - (C) the order extending time is signed before the existing deadline has expired.

# §1122. Classification of claims or interests

- (a) Except as provided in [subsection (b)](#b) of this section, a plan may place a [claim](/usc/11/101.md?p=5) or an interest in a particular class only if such [claim](/usc/11/101.md?p=5) or interest is substantially similar to the other [claims](/usc/11/101.md?p=5) or interests of such class.
- (b) A plan may designate a separate class of [claims](/usc/11/101.md?p=5) consisting only of every unsecured [claim](/usc/11/101.md?p=5) that is less than or reduced to an amount that the court approves as reasonable and necessary for administrative convenience.

# §1123. Contents of plan

- (a) Notwithstanding any otherwise applicable nonbankruptcy law, a plan shall—
  - (1) designate, subject to [section 1122 of this title](/usc/11/1122.md), classes of [claims](/usc/11/101.md?p=5), other than [claims](/usc/11/101.md?p=5) of a kind specified in section [507(a)(2)](/usc/11/507.md?p=a-2), [507(a)(3)](/usc/11/507.md?p=a-3), or [507(a)(8)](/usc/11/507.md?p=a-8) of this title, and classes of interests;
  - (2) specify any class of [claims](/usc/11/101.md?p=5) or interests that is not impaired under the plan;
  - (3) specify the treatment of any class of [claims](/usc/11/101.md?p=5) or interests that is impaired under the plan;
  - (4) provide the same treatment for each [claim](/usc/11/101.md?p=5) or interest of a particular class, unless the holder of a particular [claim](/usc/11/101.md?p=5) or interest agrees to a less favorable treatment of such particular [claim](/usc/11/101.md?p=5) or interest;
  - (5) provide adequate means for the plan’s implementation, such as—
    - (A) retention by the [debtor](/usc/11/101.md?p=13) of all or any part of the property of the estate;
    - (B) [transfer](/usc/11/101.md?p=54) of all or any part of the property of the estate to one or more [entities](/usc/11/101.md?p=15), whether organized before or after the confirmation of such plan;
    - (C) merger or consolidation of the [debtor](/usc/11/101.md?p=13) with one or more [persons](/usc/11/101.md?p=41);
    - (D) sale of all or any part of the property of the estate, either subject to or free of any [lien](/usc/11/101.md?p=37), or the distribution of all or any part of the property of the estate among those having an interest in such property of the estate;
    - (E) satisfaction or modification of any [lien](/usc/11/101.md?p=37);
    - (F) cancellation or modification of any [indenture](/usc/11/101.md?p=28) or similar instrument;
    - (G) curing or waiving of any default;
    - (H) extension of a maturity date or a change in an interest rate or other term of outstanding [securities](/usc/11/101.md?p=49);
    - (I) amendment of the [debtor](/usc/11/101.md?p=13)’s charter; or
    - (J) issuance of [securities](/usc/11/101.md?p=49) of the [debtor](/usc/11/101.md?p=13), or of any [entity](/usc/11/101.md?p=15) referred to in subparagraph (B) or (C) of this paragraph, for cash, for property, for existing [securities](/usc/11/101.md?p=49), or in exchange for [claims](/usc/11/101.md?p=5) or interests, or for any other appropriate purpose;
  - (6) provide for the inclusion in the charter of the [debtor](/usc/11/101.md?p=13), if the [debtor](/usc/11/101.md?p=13) is a [corporation](/usc/11/101.md?p=9), or of any [corporation](/usc/11/101.md?p=9) referred to in paragraph (5)(B) or (5)(C) of this subsection, of a provision prohibiting the issuance of nonvoting [equity securities](/usc/11/101.md?p=16), and providing, as to the several classes of [securities](/usc/11/101.md?p=49) possessing voting power, an appropriate distribution of such power among such classes, including, in the case of any class of [equity securities](/usc/11/101.md?p=16) having a preference over another class of [equity securities](/usc/11/101.md?p=16) with respect to dividends, adequate provisions for the election of directors representing such preferred class in the event of default in the payment of such dividends;
  - (7) contain only provisions that are consistent with the interests of [creditors](/usc/11/101.md?p=10) and [equity security holders](/usc/11/101.md?p=17) and with public policy with respect to the manner of selection of any officer, director, or [trustee](/usc/11/1502.md?p=6) under the plan and any successor to such officer, director, or [trustee](/usc/11/1502.md?p=6); and
  - (8) in a case in which the [debtor](/usc/11/101.md?p=13) is an individual, provide for the payment to [creditors](/usc/11/101.md?p=10) under the plan of all or such portion of earnings from personal services performed by the [debtor](/usc/11/101.md?p=13) after the commencement of the case or other future income of the [debtor](/usc/11/101.md?p=13) as is necessary for the execution of the plan.
- (b) Subject to [subsection (a)](#a) of this section, a plan may—
  - (1) impair or leave unimpaired any class of [claims](/usc/11/101.md?p=5), secured or unsecured, or of interests;
  - (2) subject to [section 365 of this title](/usc/11/365.md), provide for the assumption, rejection, or assignment of any executory contract or unexpired lease of the [debtor](/usc/11/101.md?p=13) not previously rejected under such section;
  - (3) provide for—
    - (A) the settlement or adjustment of any [claim](/usc/11/101.md?p=5) or interest belonging to the [debtor](/usc/11/101.md?p=13) or to the estate; or
    - (B) the retention and enforcement by the [debtor](/usc/11/101.md?p=13), by the [trustee](/usc/11/1502.md?p=6), or by a representative of the estate appointed for such purpose, of any such [claim](/usc/11/101.md?p=5) or interest;
  - (4) provide for the sale of all or substantially all of the property of the estate, and the distribution of the proceeds of such sale among holders of [claims](/usc/11/101.md?p=5) or interests;
  - (5) modify the rights of holders of secured [claims](/usc/11/101.md?p=5), other than a [claim](/usc/11/101.md?p=5) secured only by a [security interest](/usc/11/101.md?p=51) in real property that is the [debtor](/usc/11/101.md?p=13)’s principal residence, or of holders of unsecured [claims](/usc/11/101.md?p=5), or leave unaffected the rights of holders of any class of [claims](/usc/11/101.md?p=5); and
  - (6) include any other appropriate provision not inconsistent with the applicable provisions of this title.
- (c) In a case concerning an individual, a plan proposed by an [entity](/usc/11/101.md?p=15) other than the [debtor](/usc/11/101.md?p=13) may not provide for the use, sale, or lease of property exempted under [section 522 of this title](/usc/11/522.md), unless the [debtor](/usc/11/101.md?p=13) consents to such use, sale, or lease.
- (d) Notwithstanding [subsection (a)](#a) of this section and sections [506(b)](/usc/11/506.md?p=b), [1129(a)(7)](/usc/11/1129.md?p=a-7), and [1129(b)](/usc/11/1129.md?p=b) of this title, if it is proposed in a plan to cure a default the amount necessary to cure the default shall be determined in accordance with the underlying agreement and applicable nonbankruptcy law.

# §1124. Impairment of claims or interests


Except as provided in [section 1123(a)(4) of this title](/usc/11/1123.md?p=a-4), a class of [claims](/usc/11/101.md?p=5) or interests is impaired under a plan unless, with respect to each [claim](/usc/11/101.md?p=5) or interest of such class, the plan—

- (1) leaves unaltered the legal, equitable, and contractual rights to which such [claim](/usc/11/101.md?p=5) or interest entitles the holder of such [claim](/usc/11/101.md?p=5) or interest; or
- (2) notwithstanding any contractual provision or applicable law that entitles the holder of such [claim](/usc/11/101.md?p=5) or interest to demand or receive accelerated payment of such [claim](/usc/11/101.md?p=5) or interest after the occurrence of a default—
  - (A) cures any such default that occurred before or after the commencement of the case under this title, other than a default of a kind specified in [section 365(b)(2) of this title](/usc/11/365.md?p=b-2) or of a kind that [section 365(b)(2)](/usc/11/365.md?p=b-2) expressly does not require to be cured;
  - (B) reinstates the maturity of such [claim](/usc/11/101.md?p=5) or interest as such maturity existed before such default;
  - (C) compensates the holder of such [claim](/usc/11/101.md?p=5) or interest for any damages incurred as a result of any reasonable reliance by such holder on such contractual provision or such applicable law;
  - (D) if such [claim](/usc/11/101.md?p=5) or such interest arises from any failure to perform a nonmonetary obligation, other than a default arising from failure to operate a nonresidential real property lease subject to [section 365(b)(1)(A)](/usc/11/365.md?p=b-1-A), compensates the holder of such [claim](/usc/11/101.md?p=5) or such interest (other than the [debtor](/usc/11/101.md?p=13) or an [insider](/usc/11/101.md?p=31)) for any actual pecuniary loss incurred by such holder as a result of such failure; and
  - (E) does not otherwise alter the legal, equitable, or contractual rights to which such [claim](/usc/11/101.md?p=5) or interest entitles the holder of such [claim](/usc/11/101.md?p=5) or interest.

# §1125. Postpetition disclosure and solicitation

- (a) In this section—
  - (1) “adequate information” means information of a kind, and in sufficient detail, as far as is reasonably practicable in light of the nature and history of the [debtor](/usc/11/101.md?p=13) and the condition of the [debtor](/usc/11/101.md?p=13)’s books and records, including a discussion of the potential material Federal tax consequences of the plan to the [debtor](/usc/11/101.md?p=13), any successor to the [debtor](/usc/11/101.md?p=13), and a hypothetical investor typical of the holders of [claims](/usc/11/101.md?p=5) or interests in the case, that would enable such a hypothetical investor of the relevant class to make an informed judgment about the plan, but adequate information need not include such information about any other possible or proposed plan and in determining whether a disclosure statement provides adequate information, the court shall consider the complexity of the case, the benefit of additional information to [creditors](/usc/11/101.md?p=10) and other parties in interest, and the cost of providing additional information; and
  - (2) “investor typical of holders of claims or interests of the relevant class” means investor having—
    - (A) a [claim](/usc/11/101.md?p=5) or interest of the relevant class;
    - (B) such a relationship with the [debtor](/usc/11/101.md?p=13) as the holders of other [claims](/usc/11/101.md?p=5) or interests of such class generally have; and
    - (C) such ability to obtain such information from sources other than the disclosure required by this section as holders of [claims](/usc/11/101.md?p=5) or interests in such class generally have.
- (b) An acceptance or rejection of a plan may not be solicited after the commencement of the case under this title from a holder of a [claim](/usc/11/101.md?p=5) or interest with respect to such [claim](/usc/11/101.md?p=5) or interest, unless, at the time of or before such solicitation, there is transmitted to such holder the plan or a summary of the plan, and a written disclosure statement approved, after notice and a hearing, by the court as containing [adequate information](#a-1). The court may approve a disclosure statement without a valuation of the [debtor](/usc/11/101.md?p=13) or an appraisal of the [debtor](/usc/11/101.md?p=13)’s assets.
- (c) The same disclosure statement shall be transmitted to each holder of a [claim](/usc/11/101.md?p=5) or interest of a particular class, but there may be transmitted different disclosure statements, differing in amount, detail, or kind of information, as between classes.
- (d) Whether a disclosure statement required under [subsection (b)](#b) of this section contains [adequate information](#a-1) is not governed by any otherwise applicable nonbankruptcy law, rule, or regulation, but an agency or official whose duty is to administer or enforce such a law, rule, or regulation may be heard on the issue of whether a disclosure statement contains [adequate information](#a-1). Such an agency or official may not appeal from, or otherwise seek review of, an order approving a disclosure statement.
- (e) A [person](/usc/11/101.md?p=41) that solicits acceptance or rejection of a plan, in good faith and in compliance with the applicable provisions of this title, or that participates, in good faith and in compliance with the applicable provisions of this title, in the offer, issuance, sale, or purchase of a [security](/usc/11/101.md?p=49), offered or sold under the plan, of the [debtor](/usc/11/101.md?p=13), of an [affiliate](/usc/11/101.md?p=2) participating in a joint plan with the [debtor](/usc/11/101.md?p=13), or of a newly organized successor to the [debtor](/usc/11/101.md?p=13) under the plan, is not liable, on account of such solicitation or participation, for violation of any applicable law, rule, or regulation governing solicitation of acceptance or rejection of a plan or the offer, issuance, sale, or purchase of [securities](/usc/11/101.md?p=49).
- (f) Notwithstanding [subsection (b)](#b), in a [small business case](/usc/11/101.md?p=51C)—
  - (1) the court may determine that the plan itself provides [adequate information](#a-1) and that a separate disclosure statement is not necessary;
  - (2) the court may approve a disclosure statement submitted on standard forms approved by the court or adopted under [section 2075 of title 28](/usc/28/2075.md); and
  - (3)
    - (A) the court may conditionally approve a disclosure statement subject to final approval after notice and a hearing;
    - (B) acceptances and rejections of a plan may be solicited based on a conditionally approved disclosure statement if the [debtor](/usc/11/101.md?p=13) provides [adequate information](#a-1) to each holder of a [claim](/usc/11/101.md?p=5) or interest that is solicited, but a conditionally approved disclosure statement shall be mailed not later than 25 days before the date of the hearing on confirmation of the plan; and
    - (C) the hearing on the disclosure statement may be combined with the hearing on confirmation of a plan.
- (g) Notwithstanding [subsection (b)](#b), an acceptance or rejection of the plan may be solicited from a holder of a [claim](/usc/11/101.md?p=5) or interest if such solicitation complies with applicable nonbankruptcy law and if such holder was solicited before the commencement of the case in a manner complying with applicable nonbankruptcy law.

# §1126. Acceptance of plan

- (a) The holder of a [claim](/usc/11/101.md?p=5) or interest allowed under [section 502 of this title](/usc/11/502.md) may accept or reject a plan. If the [United States](/usc/11/101.md?p=55) is a [creditor](/usc/11/101.md?p=10) or [equity security holder](/usc/11/101.md?p=17), the Secretary of the Treasury may accept or reject the plan on behalf of the [United States](/usc/11/101.md?p=55).
- (b) For the purposes of subsections [(c)](#c) and [(d)](#d) of this section, a holder of a [claim](/usc/11/101.md?p=5) or interest that has accepted or rejected the plan before the commencement of the case under this title is deemed to have accepted or rejected such plan, as the case may be, if—
  - (1) the solicitation of such acceptance or rejection was in compliance with any applicable nonbankruptcy law, rule, or regulation governing the adequacy of disclosure in connection with such solicitation; or
  - (2) if there is not any such law, rule, or regulation, such acceptance or rejection was solicited after disclosure to such holder of adequate information, as defined in [section 1125(a) of this title](/usc/11/1125.md?p=a).
- (c) A class of [claims](/usc/11/101.md?p=5) has accepted a plan if such plan has been accepted by [creditors](/usc/11/101.md?p=10), other than any [entity](/usc/11/101.md?p=15) designated under [subsection (e)](#e) of this section, that hold at least two-thirds in amount and more than one-half in number of the allowed [claims](/usc/11/101.md?p=5) of such class held by [creditors](/usc/11/101.md?p=10), other than any [entity](/usc/11/101.md?p=15) designated under [subsection (e)](#e) of this section, that have accepted or rejected such plan.
- (d) A class of interests has accepted a plan if such plan has been accepted by holders of such interests, other than any [entity](/usc/11/101.md?p=15) designated under [subsection (e)](#e) of this section, that hold at least two-thirds in amount of the allowed interests of such class held by holders of such interests, other than any [entity](/usc/11/101.md?p=15) designated under [subsection (e)](#e) of this section, that have accepted or rejected such plan.
- (e) On request of a party in interest, and after notice and a hearing, the court may designate any [entity](/usc/11/101.md?p=15) whose acceptance or rejection of such plan was not in good faith, or was not solicited or procured in good faith or in accordance with the provisions of this title.
- (f) Notwithstanding any other provision of this section, a class that is not impaired under a plan, and each holder of a [claim](/usc/11/101.md?p=5) or interest of such class, are conclusively presumed to have accepted the plan, and solicitation of acceptances with respect to such class from the holders of [claims](/usc/11/101.md?p=5) or interests of such class is not required.
- (g) Notwithstanding any other provision of this section, a class is deemed not to have accepted a plan if such plan provides that the [claims](/usc/11/101.md?p=5) or interests of such class do not entitle the holders of such [claims](/usc/11/101.md?p=5) or interests to receive or retain any property under the plan on account of such [claims](/usc/11/101.md?p=5) or interests.

# §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](/usc/11/1122.md) and [1123](/usc/11/1123.md) 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](/usc/11/101.md?p=13) may modify such plan at any time after confirmation of such plan and before [substantial consummation](/usc/11/1101.md?p=2) of such plan, but may not modify such plan so that such plan as modified fails to meet the requirements of sections [1122](/usc/11/1122.md) and [1123](/usc/11/1123.md) 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](/usc/11/1129.md).
- (c) The proponent of a modification shall comply with [section 1125 of this title](/usc/11/1125.md) with respect to the plan as modified.
- (d) Any holder of a [claim](/usc/11/101.md?p=5) 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.
- (e) If the [debtor](/usc/11/101.md?p=13) is an individual, the plan may be modified at any time after confirmation of the plan but before the completion of payments under the plan, whether or not the plan has been substantially consummated, upon request of the [debtor](/usc/11/101.md?p=13), the [trustee](/usc/11/1502.md?p=6), the [United States trustee](/usc/11/102.md?p=9), or the holder of an allowed unsecured [claim](/usc/11/101.md?p=5), to—
  - (1) increase or reduce the amount of payments on [claims](/usc/11/101.md?p=5) of a particular class provided for by the plan;
  - (2) extend or reduce the time period for such payments; or
  - (3) alter the amount of the distribution to a [creditor](/usc/11/101.md?p=10) whose [claim](/usc/11/101.md?p=5) is provided for by the plan to the extent necessary to take account of any payment of such [claim](/usc/11/101.md?p=5) made other than under the plan.
- (f)
  - (1) [Sections 1121 through 1128](/usc/11/1121..1128.md) and the requirements of [section 1129](/usc/11/1129.md) apply to any modification under [subsection (e)](#e).
  - (2) The plan, as modified, shall become the plan only after there has been disclosure under [section 1125](/usc/11/1125.md) as the court may direct, notice and a hearing, and such modification is approved.

# §1128. Confirmation hearing

- (a) After notice, the court shall hold a hearing on confirmation of a plan.
- (b) A party in interest may object to confirmation of a plan.