Azusa Bankruptcy Attorney

TITLE 11 - BANKRUPTCY
CHAPTER 11 - REORGANIZATION
    SUBCHAPTER II - THE PLAN

-HEAD-
    Sec. 1122. Classification of claims or interests

-STATUTE-
      (a) Except as provided in subsection (b) of this section, a plan
    may place a claim or an interest in a particular class only if such
    claim or interest is substantially similar to the other claims or
    interests of such class.
      (b) A plan may designate a separate class of claims consisting
    only of every unsecured claim that is less than or reduced to an
    amount that the court approves as reasonable and necessary for
    administrative convenience.

-SOURCE-
    (Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2631.)


                       HISTORICAL AND REVISION NOTES                   

                         SENATE REPORT NO. 95-989                     
      This section codifies current case law surrounding the
    classification of claims and equity securities. It requires
    classification based on the nature of the claims or interests
    classified, and permits inclusion of claims or interests in a
    particular class only if the claim or interest being included is
    substantially similar to the other claims or interests of the
    class.
      Subsection (b), also a codification of existing practice,
    contains an exception. The plan may designate a separate class of
    claims consisting only of every unsecured claim that is less than
    or reduced to an amount that the court approves as reasonable and
    necessary for administrative convenience.

-End-