Notes on 11 U.S.C. § 108 : US Code - Notes

Search Notes on 11 U.S.C. § 108 : US Code - Notes

(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2556; Pub. L. 98-353, title
III, Sec. 424, July 10, 1984, 98 Stat. 369; Pub. L. 99-554, title
II, Sec. 257(b), Oct. 27, 1986, 100 Stat. 3114; Pub. L. 109-8,
title XII, Sec. 1203, Apr. 20, 2005, 119 Stat. 193.)
HISTORICAL AND REVISION NOTES
LEGISLATIVE STATEMENTS
Extension of time: The House amendment adopts section 108(c)(1)
of the Senate amendment which expressly includes any special
suspensions of statutes of limitation periods on collection outside
bankruptcy when assets are under the authority of a court. For
example, section 6503(b) of the Internal Revenue Code [title 26]
suspends collection of tax liabilities while the debtor's assets
are in the control or custody of a court, and for 6 months
thereafter. By adopting the language of the Senate amendment, the
House amendment insures not only that the period for collection of
the taxes outside bankruptcy will not expire during the title 11
proceedings, but also that such period will not expire until at
least 6 months thereafter, which is the minimum suspension period
provided by the Internal Revenue Code [title 26].
SENATE REPORT NO. 95-989
Subsections (a) and (b), derived from Bankruptcy Act section 11
[section 29 of former title 11], permit the trustee, when he steps
into the shoes of the debtor, an extension of time for filing an
action or doing some other act that is required to preserve the
debtor's rights. Subsection (a) extends any statute of limitation
for commencing or continuing an action by the debtor for two years
after the date of the order for relief, unless it would expire
later. Subsection (b) gives the trustee 60 days to take other
actions not covered under subsection (a), such as filing a
pleading, demand, notice, or proof of claim or loss (such as an
insurance claim), unless the period for doing the relevant act
expires later than 60 days after the date of the order for relief.
Subsection (c) extends the statute of limitations for creditors.
Thus, if a creditor is stayed from commencing or continuing an
action against the debtor because of the bankruptcy case, then the
creditor is permitted an additional 30 days after notice of the
event by which the stay is terminated, whether that event be relief
from the automatic stay under proposed 11 U.S.C. 362 or 1301, the
closing of the bankruptcy case (which terminates the stay), or the
exception from discharge of the debts on which the creditor claims.
In the case of Federal tax liabilities, the Internal Revenue Code
[title 26] suspends the statute of limitations on a tax liability
of a taxpayer from running while his assets are in the control or
custody of a court and for 6 months thereafter (sec. 6503(b) of the
Code [title 26]). The amendment applies this rule in a title 11
proceeding. Accordingly, the statute of limitations on collection
of a nondischargeable Federal tax liability of a debtor will resume
running after 6 months following the end of the period during which
the debtor's assets are in the control or custody of the bankruptcy
court. This rule will provide the Internal Revenue Service adequate
time to collect nondischargeable taxes following the end of the
title 11 proceedings.
AMENDMENTS
2005 - Subsec. (c)(2). Pub. L. 109-8 substituted "922, 1201, or"
for "922, or".
1986 - Subsec. (b). Pub. L. 99-554, Sec. 257(b)(1), inserted
reference to section 1201 of this title.
Subsec. (c). Pub. L. 99-554, Sec. 257(b)(2)(A), inserted
reference to section 1201 of this title in provisions preceding
par. (1).
Subsec. (c)(2). Pub. L. 99-554, Sec. 257(b)(2)(B), which directed
the amendment of subsec. (c) by inserting "1201," after "722,"
could not be executed because "722," did not appear in text.
1984 - Subsec. (a). Pub. L. 98-353, Sec. 424(b), inserted
"nonbankruptcy" after "applicable" and "entered in a" in provisions
preceding par. (1).
Subsec. (a)(1). Pub. L. 98-353, Sec. 424(a), substituted "or" for
"and" after the semicolon.
Subsec. (b). Pub. L. 98-353, Sec. 424(b), inserted
"nonbankruptcy" after "applicable" and "entered in a" in provisions
preceding par. (1).
Subsec. (b)(1). Pub. L. 98-353, Sec. 424(a), substituted "or" for
"and" after the semicolon.
Subsec. (c). Pub. L. 98-353, Sec. 424(b), inserted
"nonbankruptcy" after "applicable" and "entered in a" in provisions
preceding par. (1).
Subsec. (c)(1). Pub. L. 98-353, Sec. 424(a), substituted "or" for
"and" after the semicolon.
EFFECTIVE 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 1986 AMENDMENT
Amendment by Pub. L. 99-554 effective 30 days after Oct. 27,
1986, but not applicable to cases commenced under this title before
that date, see section 302(a), (c)(1) of Pub. L. 99-554, set out as
a note under section 581 of Title 28, Judiciary and Judicial
Procedure.
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.