Bookmarking and annotating the Code and Rules is a special benefit of ABI membership. Join ABI or take a Test Drive today, and start making the Code and Rules your own!
(a) Except as provided in subsection (b) or (c) of this section, an entity that is liable with the debtor on, or that has secured, a claim of a creditor against the debtor, and that pays such claim, is subrogated to the rights of such creditor to the extent of such payment.
(b) Such entity is not subrogated to the rights of such creditor to the extent that—
(1) a claim of such entity for reimbursement or contribution on account of such payment of such creditor’s claim is—
(A) allowed under section 502 of this title;
(C) subordinated under section 510 of this title; or
(2) as between the debtor and such entity, such entity received the consideration for the claim held by such creditor.
(c) The court shall subordinate to the claim of a creditor and for the benefit of such creditor an allowed claim, by way of subrogation under this section, or for reimbursement or contribution, of an entity that is liable with the debtor on, or that has secured, such creditor’s claim, until such creditor’s claim is paid in full, either through payments under this title or otherwise.
ABI Related Resources
Thoughtful analyses of the day's business and consumer cases.
| Article | Date |
|---|---|
| Third Circuit Makes Strict Rules Before Subrogation Rights Kick In | 10/01/2021 |
Your trusted source for original insolvency articles and legislative updates.
| Article | Date |
|---|---|
| Benchnotes November 2021 | 10/31/2021 |
| When Collateral Is Gone, Can an Unsecured Secure Payment? | 03/31/2020 |
| Equitable Subrogation The Saving Grace for Unperfected Lenders | 06/30/2005 |
| The Anatomy of a Double-Dip | 02/29/2012 |
| Secured Letters of Credit and the 502(b)(6) Cap on Lease Rejection Damages | 01/31/2005 |
Bankruptcy-related opinion summaries provided by partner LexisNexis® Collier.
| Case | Decided |
|---|---|
| LTC Holdings, Inc., In re--Giuliano v. Ins. Co. of the Pa. | 08/17/2021 |
| Glaspell, In re--Glaspell v. United States | 01/19/2021 |
| Glaspell, In re--Glaspell v. United States | 08/06/2020 |
| Dwyer v. Ins. Co. (In re Pihl, Inc.) | 09/25/2016 |
| In re Morrison | 08/01/2016 |
| In re Ariana Energy LLC | 10/29/2015 |
Quality educational content from all ABI conferences.
| Article | Date |
|---|---|
| So You Have Claims About This Claim? | 10/08/2023 |
| Circuit Splits and Hot Topics with Bill Rochelle and Friends | 04/26/2022 |
| Rochelle’s Rocky Mountain Case Law Update | 01/19/2022 |
| Hot Topics with Bill Rochelle | 11/18/2021 |
| Circuit and District Court Splits on Important Bankruptcy Issues with Bill Rochelle & Friends | 12/03/2021 |
Learn more about Law.ABI.org
