Section 108: Extension of Time

 

Title 11 of the United States Code - Bankruptcy GENERAL PROVISIONS – CHAPTER 1

Extension of Time - Section 108

11 USCS § 108


(a) If applicable nonbankruptcy law, an order entered in a nonbankruptcy proceeding, or an agreement fixes a period within which the debtor may commence an action, and such period has not expired before the date of the filing of the petition, the trustee may commence such action only before the later of--

   (1) the end of such period, including any suspension of such period occurring on or after the commencement of the case; or

   (2) two years after the order for relief.

(b) Except as provided in subsection (a) of this section, if applicable nonbankruptcy law, an order entered in a nonbankruptcy proceeding, or an agreement fixes a period within which the debtor or an individual protected under section 1201 or 1301 of this title [11 USCS § 1201 or 1301] may file any pleading, demand, notice, or proof of claim or loss, cure a default, or perform any other similar act, and such period has not expired before the date of the filing of the petition, the trustee may only file, cure, or perform, as the case may be, before the later of--

   (1) the end of such period, including any suspension of such period occurring on or after the commencement of the case; or

   (2) 60 days after the order for relief.

(c) Except as provided in section 524 of this title [11 USCS § 524], if applicable nonbankruptcy law, an order entered in a nonbankruptcy proceeding, or an agreement fixes a period for commencing or continuing a civil action in a court other than a bankruptcy court on a claim against the debtor, or against an individual with respect to which such individual is protected under section 1201 or 1301 of this title [11 USCS § 1201 or 1301], and such period has not expired before the date of the filing of the petition, then such period does not expire until the later of--

   (1) the end of such period, including any suspension of such period occurring on or after the commencement of the case; or

   (2) 30 days after notice of the termination or expiration of the stay under section 362, 922, 1201, or 1301 of this title [11 USCS § 362, 922, 1201 or 1301], as the case may be, with respect to such claim.


Further Understanding Through Case Law

Constitutionality of Bankruptcy

“In straight bankruptcy, where the ultimate purpose is liquidation of the estate, Sec. 11 provides a beneficial grace period-a grant of extra time within which to take action. In chapter X, where the purpose is rehabilitation of a going business, a period of grace is not needed. The Act itself provides all the time required. The second sentence of Sec. 11(e), then, when applied to chapter X, converts itself into a drastic limitation upon the power of the court to protect the property of the debtor in the manner contemplated by and for the purposes of the Act.”

In re Thomas J Grosso Investment, Inc. 457 F.2d 168 (1988).

“11 UCSC § 108 is designated to protect creditors by granting them time to investigate and pursue claims for benefit of estate that debtor may not have motivation to pursue.”

In re Flying “S” Land & Cattle 71 BR  183 (1987)


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