28 U.S.C. § 1409

Current through P.L. 118-44 (published on www.congress.gov on 03/18/2024), except for [P. L. 118-42]

Section 1409 - Venue of proceedings arising under title 11 or arising in or related to cases under title 11

(a) Except as otherwise provided in subsections (b) and (d), a proceeding arising under title 11 or arising in or related to a case under title 11 may be commenced in the district court in which such case is pending.

(b) Except as provided in subsection (d) of this section, a trustee in a case under title 11 may commence a proceeding arising in or related to such case to recover a money judgment of or property worth less than $1,000 ¹ or a consumer debt of less than $15,000,¹ or a debt (excluding a consumer debt) against a noninsider of less than $25,000, only in the district court for the district in which the defendant resides.

(c) Except as provided in subsection (b) of this section, a trustee in a case under title 11 may commence a proceeding arising in or related to such case as statutory successor to the debtor or creditors under section 541 or 544(b) of title 11 in the district court for the district where the State or Federal court sits in which, under applicable nonbankruptcy venue provisions, the debtor or creditors, as the case may be, may have commenced an action on which such proceeding is based if the case under title 11 had not been commenced.

(d) A trustee may commence a proceeding arising under title 11 or arising in or related to a case under title 11 based on a claim arising after the commencement of such case from the operation of the business of the debtor only in the district court for the district where a State or Federal court sits in which, under applicable nonbankruptcy venue provisions, an action on such claim may have been brought.

(e) A proceeding arising under title 11 or arising in or related to a case under title 11, based on a claim arising after the commencement of such case from the operation of the business of the debtor, may be commenced against the representative of the estate in such case in the district court for the district where the State or Federal court sits in which the party commencing such proceeding may, under applicable nonbankruptcy venue provisions, have brought an action on such claim, or in the district court in which such case is pending.

¹ See Adjustment of Dollar Amounts notes below.

28 U.S.C. § 1409

Added Pub. L. 98-353, title I, §102(a), July 10, 1984, 98 Stat. 334; amended Pub. L. 109-8, title IV, §410, Apr. 20, 2005, 119 Stat. 106; Pub. L. 116-54, §3(b), Aug. 23, 2019, 133 Stat. 1085.

EDITORIAL NOTES

AMENDMENTS2019-Subsec. (b). Pub. L. 116-54 substituted "$25,000" for "$10,000". 2005-Subsec. (b). Pub. L. 109-8 substituted "$15,000, or a debt (excluding a consumer debt) against a noninsider of less than $10,000," for "$5,000".

STATUTORY NOTES AND RELATED SUBSIDIARIES

EFFECTIVE DATE OF 2019 AMENDMENT Amendment by Pub. L. 116-54 effective 180 days after Aug. 23, 2019, see section 5 of Pub. L. 116-54 set out as a note under section 101 of Title 11, Bankruptcy.

EFFECTIVE DATE OF 2005 AMENDMENT Amendment by Pub. L. 109-8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under Title 11, Bankruptcy, before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109-8 set out as a note under section 101 of Title 11.

EFFECTIVE DATESection effective July 10, 1984, see section 122(a) of Pub. L. 98-353 set out as a note under section 151 of this title.

COURT RULES AND JUDICIAL DOCUMENTS

ADJUSTMENT OF DOLLAR AMOUNTSThe dollar amounts specified in this section were adjusted by notices of the Judicial Conference of the United States pursuant to section 104 of Title 11, Bankruptcy, as follows:By notice dated Jan. 31, 2022, 87 F.R. 6625, effective Apr. 1, 2022, in subsec. (b), dollar amounts "1,375", "20,450", and "25,000" were adjusted to "1,525", "22,700", and "27,750", respectively. See notice of the Judicial Conference of the United States set out as a note under section 104 of Title 11.By notice dated Feb. 5, 2019, 84 F.R. 3488, effective Apr. 1, 2019, in subsec. (b), dollar amounts "1,300", "19,250", and "12,850" were adjusted to "1,375", "20,450", and "13,650", respectively.By notice dated Feb. 16, 2016, 81 F.R. 8748, effective Apr. 1, 2016, in subsec. (b), dollar amounts "1,250", "18,675", and "12,475" were adjusted to "1,300", "19,250", and "12,850", respectively.By notice dated Feb. 12, 2013, 78 F.R. 12089, effective Apr. 1, 2013, in subsec. (b), dollar amounts "1,175", "17,575", and "11,725" were adjusted to "1,250", "18,675", and "12,475", respectively.By notice dated Feb. 19, 2010, 75 F.R. 8747, effective Apr. 1, 2010, in subsec. (b), dollar amounts "1,100", "16,425", and "10,950" were adjusted to "1,175", "17,575", and "11,725", respectively.By notice dated Feb. 7, 2007, 72 F.R. 7082, effective Apr. 1, 2007, in subsec. (b), dollar amounts "1,000", "15,000", and "10,000" were adjusted to "1,100", "16,425", and "10,950", respectively. Pub. L. 116-54 subsequently substituted "25,000" for "10,000", see 2019 Amendment note above.