11 U.S.C. § 1127

Modification of plan

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(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 and 1123 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 may modify such plan at any time after confirmation of such plan and before substantial consummation of such plan, but may not modify such plan so that such plan as modified fails to meet the requirements of sections 1122 and 1123 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.(c) The proponent of a modification shall comply with section 1125 of this title with respect to the plan as modified.(d) Any holder of a claim 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 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, the trustee, the United States trustee, or the holder of an allowed unsecured claim, to—(1) increase or reduce the amount of payments on claims 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 whose claim is provided for by the plan to the extent necessary to take account of any payment of such claim made other than under the plan.(f)(1) Sections 1121 through 1128 and the requirements of section 1129 apply to any modification under subsection (e).(2) The plan, as modified, shall become the plan only after there has been disclosure under section 1125 as the court may direct, notice and a hearing, and such modification is approved.(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2635; Pub. L. 98–353, title III, § 511, July 10, 1984, 98 Stat. 386; Pub. L. 109–8, title III, § 321(e), Apr. 20, 2005, 119 Stat. 96; Pub. L. 111–327, § 2(a)(34), Dec. 22, 2010, 124 Stat. 3561.)Historical and Revision Noteslegislative statements

Section 1127(a) of the House amendment adopts a provision contained in the House bill permitting only the proponent of a plan to modify the plan and rejecting the alternative of open modification contained in the Senate amendment.

senate report no. 95–989

Under subsection (a) the proponent may file a proposal to modify a plan prior to confirmation. In the case of a public company the modifying proposal may be filed prior to approval.

Subsection (b) provides that a party in interest eligible to file a plan may file instead of a plan a proposal to modify a plan filed by another. Under subsection (c) a party in interest objecting to some feature of a plan may submit a proposal to modify the plan to meet the objection.

After a plan has been confirmed, but before its substantial consummation, a plan may be modified by leave of court, which subsection (d) provides shall be granted for good cause. Subsection (e) provides that a proposal to modify a plan is subject to the disclosure requirements of section 1125 and as provided in subsection (f). It provides that a creditor or stockholder who voted for or against a plan is deemed to have accepted or rejected the modifying proposal. But if the modification materially and adversely affects any of their interests, they must be afforded an opportunity to change their vote in accordance with the disclosure and solicitation requirements of section 1125.

Under subsection (g) a plan, if modified prior to confirmation, shall be confirmed if it meets the requirements of section 1130.

house report no. 95–595

Subsection (a) permits the proponent of a plan to modify it at any time before confirmation, subject, of course, to the requirements of sections 1122 and 1123, governing classification and contents of a plan. After the proponent of a plan files a modification with the court, the plan as modified becomes the plan, and is to be treated the same as an original plan.

Subsection (b) permits modification of a plan after confirmation under certain circumstances. The modification must be proposed before substantial consummation of the plan. The requirements of sections 1122 and 1123 continue to apply. The plan as modified under this subsection becomes the plan only if the court confirms the plan as modified under section 1129 and the circumstances warrant the modification.

Subsection (c) requires the proponent of a modification to comply with the disclosure provisions of section 1125. Of course, if the modification were sufficiently minor, the court might determine that additional disclosure was not required under the circumstances.

Subsection (d) simplifies modification procedure by deeming any creditor or equity security holder that has already accepted or rejected the plan to have accepted or rejected the modification, unless, within the time fixed by the court, the creditor or equity security holder changes this previous acceptance or rejection.

Editorial NotesAmendments

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

2005—Subsecs. (e), (f). Pub. L. 109–8 added subsecs. (e) and (f).

1984—Subsec. (a). Pub. L. 98–353, § 511(a), inserted “of a plan” after “After the proponent”, and “of such plan” after “modification”.

Subsec. (b). Pub. L. 98–353, § 511(b), substituted “circumstances warrant such modification and the court, after notice and a hearing, confirms such plan as modified, under section 1129 of this title” for “the court, after notice and a hearing, confirms such plan, as modified, under section 1129 of this title, and circumstances warrant such modification”.

Statutory Notes and Related SubsidiariesEffective Date of 2005 Amendment

Amendment by Pub. L. 109–8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of this title.

Effective Date of 1984 Amendment

Amendment by Pub. L. 98–353 effective with respect to cases filed 90 days after July 10, 1984, see section 552(a) of Pub. L. 98–353, set out as a note under section 101 of this title.

Notes of Decisions

Cited in 366 cases (46 in the last 5 years), 1980–2026 · leading case: William Ochadleus v. City of Detroit, 838 F.3d 792 (6th Cir. 2016).

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William Ochadleus v. City of Detroit, 838 F.3d 792 (6th Cir. 2016). · cites it 6× “Second, the Seventh Circuit pointed to 11 U.S.C. § 1127 (b), which “dramatically curtails the power of a bankruptcy court to modify a plan of reorganization after its confirmation and ‘substantial consummation’”—although the Seventh Circuit acknowledged that § 1127(b) “does not…”

In Re Am. Solar King Corp., 90 B.R. 808 (Bankr. W.D. Tex. 1988). · cites it 7× “11 U.S.C. § 1127 ; see 11 U.S.C. §§ 1122 , 1123, 1125.”

Alberta Energy Partners v. Blast Energy Servs., Inc. (In Re Blast Energy Servs., Inc.), 593 F.3d 418 (5th Cir. 2010). · cites it 5× “Primarily, in this opinion we address the equitable mootness of the Confirmation Appeal and the effect of 11 U.S.C. § 1127 (b) on this appeal. For the reasons that follow, we reverse specifically the district court’s denial of Alberta’s motion for rehearing and remand to the…”

Crestar Bank v. Walker (In Re Walker), 165 B.R. 994 (E.D. Va. 1994). · cites it 7× “The appeal presents two issues: (1) whether the sua sponte imposition of conditions to the Amended Plan by the Bankruptcy Court violated 11 U.S.C. § 1127 which allows “[t]he proponent of a plan to modify such plan at any time before confirmation.”

In Re Sentinel Mgmt. Grp., Inc., 398 B.R. 281 (Bankr. N.D. Ill. 2008). · cites it 6× “Whether the Third Amended Plan incorporates material modifications to the First Amended Plan that require a new disclosure statement and re-solicitation of votes under 11 U.S.C. §§ 1127 (c) and 1129(a)(2). Next, the Plan Objectors argue that the Third Amended Plan violates 11 U.”

Florida Dep't of Revenue v. Piccadilly Cafeterias, Inc., 554 U.S. 33 (2008). · cites it 2× “, 11 U.S.C. § 1127 (b) (plan proponent may modify it "at any time after confirmation" (emphasis added)); § 1104(a) ("[a]t any time after the commencement of the case but before confirmation" (emphasis added)); § 1104(c) ("at any time before the confirmation of a plan" (emphasis…”

U.S. Brass Corp. v. Travelers Ins. Grp., Inc., 301 F.3d 296 (5th Cir. 2002). · cites it 7× “9 *303 Second, the court recognized that 11 U.S.C. § 1127 (b) “prohibits modification of a substantially consummated plan of reorganization” and concluded that approving the Appellants’ motion would violate this prohibition: The proposed “settlement” agreement alters by…”

In Re CF & I Fabricators of Utah, Inc., 199 B.R. 986 (Bankr. D. Utah 1996). · cites it 8× “” 11 U.S.C. § 1127 (b). Only the plan proponent or the reorganized debtor, not the UST, has standing to attempt to modify a plan prior to substantial consummation.”

In Re Asarco LLC, 420 B.R. 314 (S.D. Tex. 2009). · cites it 6× “Arguments of the Parties The Debtor (and other proponents of the September 10th Plan) assert that its September 10th Plan was filed “in accordance with 11 U.S.C. § 1127 ,” which permits a plan proponent to “modify such plan at any time before confirmation.”

Emilio Braun v. Am.-CV Station Grp., Inc., 56 F.4th 1302 (11th Cir. 2023). · cites it 4× “and Caribevision TV Network, LLC were set to be confirmed, the debtors filed an emergency motion to modify the plans under 11 U.S.C. § 1127 (a). The initial plans called for equity in the reorganized companies to be split between four shareholders: Ramon Diez-Barroso, Pegaso…”

In Matter of Johnson, 402 B.R. 851 (Bankr. N.D. Ind. 2009). · cites it 4× “11 U.S.C. § 1127 (b). Instead, an individual debtor’s plan can be modified any time prior to the completion of payments and modification may be sought, not just by the plan proponent and the reorganized debtor, id.”

Carter v. Peoples Bank & Trust Co. (In Re BNW, Inc.), 201 B.R. 838 (Bankr. S.D. Ala. 1996). · cites it 5× “§ 1144 ; (2) modification of the plan under 11 U.S.C. § 1127 (b); (3) relief from the order under Fed.”

Show all 366 citing cases →

— 11 U.S.C. § 1127(a) — 1 case

In Re G-1 Holdings Inc., 420 B.R. 216 (D.N.J. 2009).

— 11 U.S.C. § 1127(b) — 1 case

In re Lemus, 516 B.R. 333 (Bankr. E.D. Va. 2014).

— 11 U.S.C. § 1127(c) — 1 case

In Re Am. Solar King Corp., 90 B.R. 808 (Bankr. W.D. Tex. 1988). “11 U.S.C. § 1127 ; see 11 U.S.C. §§ 1122 , 1123, 1125.”

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