§ 508. Effect of distribution other than under this title
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/usc/title-11/section-508A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
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
legislative 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.
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U.S. Code
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- Pub. L. 95–598
- 92 Stat. 2585
- Pub. L. 109–8, title VIII, § 802(d)(7)
- 119 Stat. 146
- Pub. L. 109–8
- section 1501 of Pub. L. 109–8
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§ 508
Effect of distribution other than under this title
Stat.×1
Pub. L.Pub. L. 95–598
Stat.92 Stat. 2585
Pub. L.Pub. L. 109–8, title VIII, § 802(d)(7)
Stat.119 Stat. 146
Pub. L.Pub. L. 109–8
Cites 7 · showing 6Cited by 1 across 1 source