Rule 3021 Federal Rules of Bankruptcy Procedure

Rule 3021 of the Federal Rules of Bankruptcy Procedure is about Distributing Funds Under a Plan. It is under Part III (Claims and Distribution to Creditors and Equity Interest Holders; Plans) of the Rules.

(a) In General. After confirmation and when any stay under Rule 3020(e) expires, payments under the plan must be distributed to:

· creditors whose claims have been allowed;

· interest holders whose interests have not been disallowed; and

· indenture trustees whose claims under Rule 3003(c)(5) have been allowed.

(b) Definition of “Creditors” and “Interest Holders.” In this Rule 3021:

(1) “creditors” include record holders of bonds, debentures, notes, and other debt securities as of the initial distribution date, unless the plan or confirmation order states a different date; and

(2) “interest holders” include record holders of stock and other equity securities as of the initial distribution date, unless the plan or confirmation order states a different date.