Chapter 11 De Minimus Sums Donations

 

Access to Bankruptcy Court has previously been the beneficiary of de minimus sums under confirmed chapter 11 plans, which sums would otherwise be too burdensom for the liquidation trustee or other representative of the estate to administer and distribute to creditors.  We encourage any attorneys representing parties in chapter 11 cases to include language in their proposed plans of reorganization, liquidating trusts or final decrees donating these de minimus sums to Access to Bankruptcy Court.

 

Below are draft proposed provisions which may be helpful:

 

PROPOSED PLAN OF REORGANIZATION LANGUAGE

The Liquidation Trustee is authorized and directed to donate any undeliverable distributions which are not claimed within the time frame set forth in Article __ of the Plan, along with any unused withheld funds and any other de minimus funds received by the Trust subsequent to the filing of a motion to approve final report, to Pro Se Bankruptcy Assistance Project Inc. d/b/a Access to Bankruptcy Court.

 

PROPOSED LIQUIDATING TRUST LANGUAGE

The Liquidation Trustee is authorized and directed to tender to Pro Se Bankruptcy Assistance Project Inc. d/b/a Access to Bankruptcy Court:  (i) those distributions set forth on Exhibit __ that are less than $___ (defined as De Minimus Final Distributions in Section ___ of the Trust Agreement); (ii) any undeliverable Distributions (as that term is defined in Section ___ of the Trust Agreement), and (iii) any Unclaimed Property (as that term is defined in Section __ of the Trust Agreement).

 

PROPOSED FINAL DECREE AND ORDER CLOSING BANKRUPTCY CASE LANGUAGE

To the extent the Debtor is able to make additional distributions to any creditors in excess of $____________ ($____) dollars, the Debtor will make such additional distribution as funds are available in the Debtor’s discretion.  If funds are not sufficient to make an additional distribution to a creditor in excess of $_____________, the pro rata distribution attributable to any such creditor will be donated to Pro Se Bankruptcy Assistance Project Inc. d/b/a Access to Bankruptcy Court.

 

At the time such a donation is ready to be made, please contact an Access to Bankruptcy Court director or follow the instructions on the 'Donate Now' page for directions.