Sierra Madre Bankruptcy Attorney

TITLE 11 - BANKRUPTCY
CHAPTER 9 - ADJUSTMENT OF DEBTS OF A MUNICIPALITY
    SUBCHAPTER III - THE PLAN

-HEAD-
    Sec. 944. Effect of confirmation

-STATUTE-
      (a) The provisions of a confirmed plan bind the debtor and any
    creditor, whether or not - 
        (1) a proof of such creditor's claim is filed or deemed filed
      under section 501 of this title;
        (2) such claim is allowed under section 502 of this title; or
        (3) such creditor has accepted the plan.

      (b) Except as provided in subsection (c) of this section, the
    debtor is discharged from all debts as of the time when - 
        (1) the plan is confirmed;
        (2) the debtor deposits any consideration to be distributed
      under the plan with a disbursing agent appointed by the court;
      and
        (3) the court has determined - 
          (A) that any security so deposited will constitute, after
        distribution, a valid legal obligation of the debtor; and
          (B) that any provision made to pay or secure payment of such
        obligation is valid.

      (c) The debtor is not discharged under subsection (b) of this
    section from any debt - 
        (1) excepted from discharge by the plan or order confirming the
      plan; or
        (2) owed to an entity that, before confirmation of the plan,
      had neither notice nor actual knowledge of the case.

-SOURCE-
    (Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2624.)


                       HISTORICAL AND REVISION NOTES                   

                         SENATE REPORT NO. 95-989                     
      [Section 947] Subsection (a) [enacted as section 944(a)] makes
    the provisions of a confirmed plan binding on the debtor and
    creditors. It is derived from section 95(a) of chapter 9 [section
    415(a) of former title 11].
      Subsections (b) and (c) [enacted as section 944(b) and (c)]
    provide for the discharge of a municipality. The discharge is
    essentially the same as that granted under section 95(b) of the
    Bankruptcy Act [section 415(b) of former title 11].

-End-