Recovery Rights of Post Petition
Published: 1999 | Author: William J. Tucker

This paper discusses post-petition rights of creditors. 


In general, pre-petition creditors are bound by the terms of the plan with respect to the debtor’s property and property of the estate.  Alternatively, post-petition creditors are stayed with respect to property of the estate, but not property of the debtor.  Issues regarding post-petition creditor rights arise under sections 362, 1306 and 1327(b) of the Bankruptcy Code.  In the 7th Circuit, a bankruptcy court cannot provide a broad limitation to the vesting of a property in a confirmation order.  Also, a post-petition creditor is not stayed, post-confirmation, from recovery of the debtor’s property and earnings.  Counsel for a debtor has several specific requirements, and a post-petition creditor has no easy way to determine whether property targeted by it for recovery is necessary to fulfillment of the Plan.

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