Bankruptcy Code

Bankruptcy is a legal declaration that allows some debtors to discharge their unsecured debts. The text of this statute is provided as general information to the public. It may be amended, revised, or rescinded at any time without notice. This information is not intended to be legal advice. For more information, please see our disclaimer.

11 U.S.C. § 742. Effect of section 362 of this title [11 USCS § 362] in this subchapter

Notwithstanding section 362 of this title [11 USCS § 362], SIPC may file an application for a protective decree under the Securities Investor Protection Act of 1970 [15 USCS §§ 78aaa et seq.]. The filing of such application stays all proceedings in the case under this title unless and until such application is dismissed. If SIPC completes the liquidation of the debtor, then the court shall dismiss the case.

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