11 U.S.C. § 1109

Right to be heard

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(a) The Securities and Exchange Commission may raise and may appear and be heard on any issue in a case under this chapter, but the Securities and Exchange Commission may not appeal from any judgment, order, or decree entered in the case.(b) A party in interest, including the debtor, the trustee, a creditors’ committee, an equity security holders’ committee, a creditor, an equity security holder, or any indenture trustee, may raise and may appear and be heard on any issue in a case under this chapter.(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2629; Pub. L. 119–27, § 11(f), July 18, 2025, 139 Stat. 458.)Amendment of Section

Pub. L. 119–27, §§ 11(f), 20, July 18, 2025, 139 Stat. 458, 466, provided that, effective on the earlier of the date that is 18 months after July 18, 2025, or the date that is 120 days after the date on which the primary Federal payment stablecoin regulators issue any final regulations implementing Pub. L. 119–27, this section is amended by adding at the end the following:

(c) The Comptroller of the Currency or State payment stablecoin regulator (as defined in section 2 of the GENIUS Act) shall raise, and shall appear and be heard on, any issue, including the protection of customers, in a case under this chapter in which the debtor is a permitted payment stablecoin issuer.

See 2025 Amendment note below.

Historical and Revision Noteslegislative statements

Section 1109 of the House amendment represents a compromise between comparable provisions in the House bill and Senate amendment. As previously discussed the section gives the Securities and Exchange Commission the right to appear and be heard and to raise any issue in a case under chapter 11; however, the Securities and Exchange Commission is not a party in interest and the Commission may not appeal from any judgment, order, or decree entered in the case. Under section 1109(b) a party in interest, including the debtor, the trustee, creditors committee, equity securities holders committee, a creditor, an equity security holder, or an indentured trustee, may raise and may appear and be heard on any issue in a case under chapter 11. Section 1109(c) of the Senate amendment has been moved to subchapter IV pertaining to Railroad Reorganizations.

senate report no. 95–989

Subsection (a) provides, in unqualified terms, that any creditor, equity security holder, or an indenture trustee shall have the right to be heard as a party in interest under this chapter in person, by an attorney, or by a committee. It is derived from section 206 of chapter X ([former] 11 U.S.C. 606).

Subsection (b) provides that the Securities and Exchange Commission may appear by filing an appearance in a case of a public company and may appear in other cases if authorized or requested by the court. As a party in interest in either case, the Commission may raise and be heard on any issue. The Commission may not appeal from a judgment, order, or decree in a case, but may participate in any appeal by any other party in interest. This is the present law under section 208 of chapter X ([former] 11 U.S.C. 608).

house report no. 95–595

Section 1109 authorizes the Securities and Exchange Commission and any indenture trustee to intervene in the case at any time on any issue. They may raise an issue or may appear and be heard on an issue that is raised by someone else. The section, following current law, denies the right of appeal to the Securities and Exchange Commission. It does not, however, prevent the Commission from joining or participating in an appeal taken by a true party in interest. The Commission is merely prevented from initiating the appeal in any capacity.

Editorial NotesAmendments

2025—Subsec. (c). Pub. L. 119–27 added subsec. (c).

Statutory Notes and Related SubsidiariesEffective Date of 2025 Amendment

Amendment by Pub. L. 119–27 effective on the earlier of the date that is 18 months after July 18, 2025, or the date that is 120 days after the date on which the primary Federal payment stablecoin regulators issue any final regulations implementing Pub. L. 119–27, see section 20 of Pub. L. 119–27, set out as an Effective Date note under section 5901 of Title 12, Banks and Banking.

Notes of Decisions

Cited in 653 cases (108 in the last 5 years), 1980–2026 · leading case: In Re Global Industrial Technologies, Inc.

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In Re Global Industrial Technologies, Inc. (2011) ca3 · cites it 4× “Standing in bankruptcy cases is also governed by the terms of 11 U.S.C. § 1109 (b), which provides that "[a] party in interest, including the debtor, the trustee, a creditors' committee, an equity security holders' committee, a creditor, an equity security holder, or any…”

In re W.R. Grace & Co. (2012) ded · cites it 3× “The Third Circuit recently clarified the scope of bankruptcy standing in GIT, providing that a party challenging a reorganization plan in bankruptcy court must meet both the constitutional requirements for standing under Article III of the U.”

Official Committee of Unsecured Creditors of Allegheny International, Inc. v. Mellon Bank, N.A. (In Re Allegheny Interna (1989) pawd · cites it 11× “2d 440 (1983), the Third Circuit held that 11 U.S.C. § 1109 (b) grants an official committee an absolute right to intervene sufficient to satisfy Rule 24(a)(1).”

Truck Insurance Exchange v. Kaiser Gypsum Co. (2024) scotus · cites it 3× “11 U. S. C. § 1109 (b). The question in this case is whether an insurer with fnancial responsibility for a bank- ruptcy claim is a “party in interest” under this provision.”

Baron & Budd, P.C. v. Unsecured Asbestos Committee (2005) njd · cites it 3× “In response, Appellees argue that because Rule 2019 disclosure bears directly on plan confirmation, standing to raise issues in the confirmation process is appropriate and must include standing to raise issues with respect to Rule 2019 disclosure.”

St. Paul Fire & Marine Insurance v. Labuzan (2009) ca5 · cites it 3× “In Chapter 11 matters, in finding creditor-standing, some courts, cited infra, relied on 11 U.S.C. § 1109 (b). That section states: A party in interest, including the debtor, the trustee, a creditors’ committee, an equity security holders’ committee, a creditor, an equity…”

In Re Torrez (1991) caeb · cites it 7× “First, does this Court have jurisdiction to decide this controversy as a contested matter or should it have been brought by way of adversary proceeding? Secondly, if properly before the Court as a contested matter, does the moving party have standing under 11 U.S.C. § 1109 (b)…”

Truck Insurance Exchange v. Kaiser Gypsum Company, Inc. (2023) ca4 · cites it 4× “As a result, the bankruptcy court concluded that Truck was not a “party in interest” under 11 U.S.C. § 1109 (b) 4 and thus 4 Section 1109(b) provides that “[a] party in interest .”

Assured Guaranty Corp. v. Financial Oversight & Management Board for Puerto Rico (2017) ca1 · cites it 5× “1 Because we hold that 11 U.S.C. § 1109 (b), a provision of the Bankruptcy Code expressly incorporated by PROMESA, provides an “unconditional right to intervene” within the meaning of Fed.”

In Re Johns-Manville Corp. (1984) nysb · cites it 3× “The Elastic Concept of “Party In In terest” and Section 1109(b) of the Code Section 1109(b) of the Code, 11 U.S.C. § 1109 (b), makes clear that any “party in interest” may appear and be heard in a Chapter 11 case.”

Official Committee of Unsecured Creditors of Cybergenics Corp. Ex Rel. Cybergenics Corp. v. Chinery (2003) ca3 · cites it 6× “11 U.S.C. § 1109 (b) (emphasis added). The Committee submits that, “[a]lthough 1109 would not provide an independent right for the Committee to initiate a suit, absent bankruptcy court approval, it does support the authority of bankruptcy courts to permit creditors’ committees…”

Hobson v. Travelstead (In Re Travelstead) (1998) mdd · cites it 6× “She argues that the Plan was not confirmable because her due process rights under 11 U.S.C. § 1109 and Fed. R.Bankr.P.2002(b) were violated; because the prerequisites to confirmation in 11 U.”

Show all 653 citing cases →

— 11 U.S.C. § 1109(b) — 7 cases

Hyundai Translead, Inc. v. Jackson Truck & Trailer Repair, Inc. (In Re Trailer Source, Inc.) (2009) ca6

In re Campbellton-Graceville Hosp. Corp. (2018) flnb

Barnett Bank of Southeast Georgia, N.A. v. Trust Co. Bank of Southeast Georgia, N.A. (In Re Ring) (1995) gasb

Official Committee of Unsecured Creditors of Allegheny International, Inc. v. Mellon Bank, N.A. (In Re Allegheny Interna (1989) pawd “2d 440 (1983), the Third Circuit held that 11 U.S.C. § 1109 (b) grants an official committee an absolute right to intervene sufficient to satisfy Rule 24(a)(1).”

In Re Texaco Inc. (1988) nysb

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