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§ 726. Distribution of property of the estate |
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| Release date: 2005-07-12 | |
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(a)
Except as provided in section
510 of this title, property of the estate shall be distributed—
(1)
first, in payment of claims of the kind specified in, and in the order specified in, section
507 of this title, proof of which is timely filed under section
501 of this title or tardily filed before the date on which the trustee commences distribution under this section;
(2)
second, in payment of any allowed unsecured
claim, other than a claim of a kind specified in paragraph (1), (3), or
(4) of this subsection, proof of which is—
(3)
third, in payment of any allowed unsecured claim proof of which is tardily filed under section
501
(a) of this title, other than a claim of the kind specified in paragraph (2)(C) of this subsection;
(4)
fourth, in payment of any allowed claim, whether
secured or unsecured, for any fine, penalty, or forfeiture, or for
multiple, exemplary, or punitive damages, arising before the earlier of
the order for relief or the appointment of a trustee, to the extent
that such fine, penalty, forfeiture, or damages are not compensation
for actual pecuniary loss suffered by the holder of such claim;
(b)
Payment on claims of a kind specified in paragraph (1), (2), (3), (4), (5), (6), (7), or (8) of section
507
(a)
of this title, or in paragraph (2), (3), (4), or (5) of subsection (a)
of this section, shall be made pro rata among claims of the kind
specified in each such particular paragraph, except that in a case that
has been converted to this chapter under section 1009,[1]
1112,
1208, or
1307 of this title, a claim allowed under section
503
(b) of this title incurred under this chapter after such conversion has priority over a claim allowed under section
503
(b)
of this title incurred under any other chapter of this title or under
this chapter before such conversion and over any expenses of a
custodian superseded under section 543 of this title.
(c)
Notwithstanding subsections (a) and (b) of this section, if there is property of the kind specified in section
541
(a)(2)
of this title, or proceeds of such property, in the estate, such
property or proceeds shall be segregated from other property of the
estate, and such property or proceeds and other property of the estate
shall be distributed as follows:
(1)
Claims allowed under section
503 of this title shall be paid either from property of the kind specified in section
541
(a)(2) of this title, or from other property of the estate, as the interest of justice requires.
(2)
Allowed claims, other than claims allowed under section
503
of this title, shall be paid in the order specified in subsection (a)
of this section, and, with respect to claims of a kind specified in a
particular paragraph of section 507 of this title or subsection (a) of this section, in the following order and manner:
(A)
First, community claims against the debtor or the debtor’s spouse shall be paid from property of the kind specified in section
541
(a)(2) of this title, except to the extent that such property is solely liable for debts of the debtor.
(B)
Second, to the extent that community claims
against the debtor are not paid under subparagraph (A) of this
paragraph, such community claims shall be paid from property of the
kind specified in section 541
(a)(2) of this title that is solely liable for debts of the debtor.
[1] So in original. This title does not contain a section 1009. | Search this title:
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