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Section 347(a) applies only to cases under chapters 7, 12 and 13, and directs the deposit of unclaimed funds into the bankruptcy court registry trust account 6047BK.
In practice, in the case of liquidating chapter 11 plans, unless the debtor entity is dissolved or extinguished under the chapter 11 liquidating plan, the debtor entity continues to exist.
Section 1143 provides that any act required to participate in a distribution under a chapter 11 plan must be completed "not later than five years after the date of entry of the confirmation order." Neither §1143 nor 347 provides guidance concerning where chapter 11 unclaimed funds should be held in the interim, and presumably this issue would be addressed in the plan or liquidating trust (or other liquidating entity) if one were established by the liquidating plan.
Doctrine We believe that the disposition of undistributed funds to charitable causes can be accomplished by the inclusion of provisions in the liquidating plan directing that funds and property remaining undistributed after a specified period of time after entry of the confirmation order are to be donated to one or more specified charitable or other organizations.
These undistributed funds, sometimes meager and sometimes not, that fall through the cracks of §347(b) are the focus of this article.
Bankruptcy Court for the District of Delaware had more than 0,000 in its court registry relating to liquidating chapter 11 cases.
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