U.S. Code » Title 11 » Chapter CHAPTER 11— REORGANIZATION › Subchapter SUBCHAPTER I— OFFICERS AND ADMINISTRATION

11 U.S.C. § 1111

Claims and interests

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(a) A proof of claim or interest is deemed filed under section 501 of this title for any claim or interest that appears in the schedules filed under section 521(a)(1) or 1106(a)(2) of this title, except a claim or interest that is scheduled as disputed, contingent, or unliquidated.(b)(1)(A) A claim secured by a lien on property of the estate shall be allowed or disallowed under section 502 of this title the same as if the holder of such claim had recourse against the debtor on account of such claim, whether or not such holder has such recourse, unless—(i) the class of which such claim is a part elects, by at least two-thirds in amount and more than half in number of allowed claims of such class, application of paragraph (2) of this subsection; or(ii) such holder does not have such recourse and such property is sold under section 363 of this title or is to be sold under the plan.(B) A class of claims may not elect application of paragraph (2) of this subsection if—(i) the interest on account of such claims of the holders of such claims in such property is of inconsequential value; or(ii) the holder of a claim of such class has recourse against the debtor on account of such claim and such property is sold under section 363 of this title or is to be sold under the plan.(2) If such an election is made, then notwithstanding section 506(a) of this title, such claim is a secured claim to the extent that such claim is allowed.(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2630; Pub. L. 111–327, § 2(a)(32), Dec. 22, 2010, 124 Stat. 3561.)Historical and Revision Noteslegislative statements

A discussion of section 1111(b) of the House amendment is best considered in the context of confirmation and will therefore, be discussed in connection with section 1129.

senate report no. 95–989

This section dispenses with the need for every creditor and equity security holder to file a proof of claim or interest in a reorganization case. Usually the debtor’s schedules are accurate enough that they will suffice to determine the claims or interests allowable in the case. Thus, the section specifies that any claim or interest included on the debtor’s schedules is deemed filed under section 501. This does not apply to claims or interests that are scheduled as disputed, contingent, or unliquidated.

Editorial NotesAmendments

2010—Subsec. (a). Pub. L. 111–327 substituted “521(a)(1)” for “521(1)”.

Notes of Decisions
Cited in 464 cases (21 in the last 5 years), 1980–2026 · leading case: JPMCC 2007-C1 Grasslawn Lodging, LLC v. Transwest Resort Props. Inc. (In Re Transwest Resort Props., Inc.), 881 F.3d 724 (9th Cir. 2018).
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JPMCC 2007-C1 Grasslawn Lodging, LLC v. Transwest Resort Props. Inc. (In Re Transwest Resort Props., Inc.), 881 F.3d 724 (9th Cir. 2018). · cites it 17× “A lender, whose claim was undersecured, elected to have its entire claim treated as secured pursuant to 11 U.S.C. § 1111 (b)(2). The plan restructured the lender’s loan to a term of 21 years and included a due-on-sale clause requiring the debtors to pay the lender the…”
Pioneer Inv. Servs. Co. v. Brunswick Assocs. Ltd. P'ship, 507 U.S. 380 (1993). · cites it 2× “Under § 1111 of the Bankruptcy Code, 11 U. S. C. § 1111 (a), and Bankruptcy Rule 3003(c)(2), all such creditors are required to file a proof of claim with the bankruptcy court before the deadline, or "bar date," established by the court.”
In Re SM 104 Ltd., 160 B.R. 202 (Bankr. S.D. Fla. 1993). · cites it 6× “” 11 U.S.C. § 1111 (b)(1)(A). Here, the court has already been determined that the value of the Cypress Creek *216 property is insufficient to satisfy EquiVest’s first mortgage claim.”
Bd. of Cnty. Commissioners v. Coleman Am. Props., Inc. (In Re Am. Props., Inc.), 30 B.R. 239 (Bankr. D. Kan. 1983). · cites it 6× “In chapter 11 cases, Congress contemplated that creditors with non-recourse in rem rights to payment would automatically have recourse in per-sonam against the debtor under 11 U.S.C. § 1111 (b)(1). Furthermore, creditors with liens on property such as statutory tax liens, have a…”
Varela v. Dynamic Brokers, Inc. (In Re Dynamic Brokers, Inc.), 293 B.R. 489 (B.A.P. 9th Cir. 2003). · cites it 4× “" 11 U.S.C. § 1111 (a). [3] Under § 1111(a), which provision is unique to chapter 11 cases, the Varela claim was "deemed filed" when debtor filed schedules listing the $170,000 debt to Varela without designating it as disputed, contingent or unliquidated.”
Darby v. Zimmerman (In Re Popp), 323 B.R. 260 (B.A.P. 9th Cir. 2005). · cites it 4× “11 U.S.C. § 1111 (b) (preserving nonrecourse creditor's right to look to property appreciation for repayment).”
Provident Bank v. BBT (In Re BBT), 11 B.R. 224 (Bankr. D. Nev. 1981). · cites it 6× “Provident is not entitled to be secured for its total claim of $6,000,000 unless, when a plan is proposed, it exercises its election under 11 U.S.C. § 1111 (b)(2). During trial BBT produced a letter, backed by reliable bank credit, from Peter S.”
First S. Nat'l Bank v. Sunnyslope Hous. Ltd. P'ship, 859 F.3d 637 (9th Cir. 2017). · cites it 3× “Finally, the en banc court held that the bankruptcy court did not err in failing to allow the creditor, on remand, to make a second election to have its claim treated as either fully or partially secured under 11 U.S.C. § 1111 (b). Dissenting, Judge Kozinski, joined by Judges…”
In the Matter of Greystone III Jt. Venture, Debtor. Phoenix Mut. Life Ins. Co. v. Greystone III Jt. Venture, 995 F.2d 1274 (5th Cir. 1992). · cites it 3× “As filed, Greystone’s Second Amended Plan of Reorganization (the “Plan”), the confirmation of which is challenged in this appeal, separately classified the Code-created unsecured deficiency claim of Phoenix Mutual, see 11 U.S.C. § 1111 (b), and the unsecured claims of the trade…”
Bank of New York Trust Co. v. Off. Unsecured Creditors' Comm., 584 F.3d 229 (5th Cir. 2009). · cites it 2× “The Indenture Trustee declined to elect under 11 U.S.C. § 1111 (b)(2) to have the entire amount of its claim treated as a secured claim.”
Hous. SportsNet Fin., L.L.C. v. Hous. Astros, L.L.C. (In re Hous. Reg'l Sports Network, L.P.), 886 F.3d 523 (5th Cir. 2018). · cites it 4× “Before the Plan was confirmed, Comcast made an election pursuant to 11 U.S.C. § 1111 (b), which permits an undersecured creditor-a secured creditor whose collateral is worth less than its claim-to elect to have its claim treated as fully, rather than partially, secured.”
In Re Crouthamel Potato Chip Co., (Debtor). Appeal of Local 1092, Int'l Ass'n of MacHinists & Aerospace Workers, Afl-Cio, 786 F.2d 141 (3d Cir. 1986). · cites it 5× “The union did not actually file separate claims for wages owing, as the schedule filed by the debtor was an accurate statement of the claims and was deemed to represent the employees’ claims under Chapter 11, pursuant to 11 U.S.C. § 1111 (a). On November 29, 1982, the case was…”
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11 U.S.C. § 1111(a): 1 case
In Re Haugen Constr. Servs., Inc. First Am. Bank & Trust of Minot, Appellant, v. Butler Mach. Co., Appellee, 876 F.2d 681 (1st Cir. 1989).
11 U.S.C. § 1111(b): 5 cases
In re Holt, 497 B.R. 817 (Bankr. D.S.C. 2013).
In Re Meadow Glen, Ltd., 87 B.R. 421 (Bankr. W.D. Tex. 1988).
In Re Red Mountain Mach. Co., 451 B.R. 897 (Bankr. D. Ariz. 2011).
In re 300 Washington Street LLC, 528 B.R. 534 (Bankr. E.D.N.Y. 2015).
In Re Rosage, 82 B.R. 389 (Bankr. W.D. Pa. 1987).
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