Duarte Bankruptcy Attorney

TITLE 11 - BANKRUPTCY
CHAPTER 3 - CASE ADMINISTRATION
    SUBCHAPTER III - ADMINISTRATION

-HEAD-
    Sec. 344. Self-incrimination; immunity

-STATUTE-
      Immunity for persons required to submit to examination, to
    testify, or to provide information in a case under this title may
    be granted under part V of title 18.

-SOURCE-
    (Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2565.)


                       HISTORICAL AND REVISION NOTES                   

                         SENATE REPORT NO. 95-989                     
      Part V [Sec. 6001 et seq.] of title 18 of the United States Code
    governs the granting of immunity to witnesses before Federal
    tribunals. The immunity provided under part V is only use immunity,
    not transactional immunity. Part V applies to all proceedings
    before Federal courts, before Federal grand juries, before
    administrative agencies, and before Congressional committees. It
    requires the Attorney General or the U. S. attorney to request or
    to approve any grant of immunity, whether before a court, grand
    jury, agency, or congressional committee.
      This section carries part V over into bankruptcy cases. Thus, for
    a witness to be ordered to testify before a bankruptcy court in
    spite of a claim of privilege, the U. S. attorney for the district
    in which the court sits would have to request from the district
    court for that district the immunity order. The rule would apply to
    both debtors, creditors, and any other witnesses in a bankruptcy
    case. If the immunity were granted, the witness would be required
    to testify. If not, he could claim the privilege against self-
    incrimination.
      Part V is a significant departure from current law. Under section
    7a(10) of the Bankruptcy Act [section 25(a)(10) of former title
    11], a debtor is required to testify in all circumstances, but any
    testimony he gives may not be used against him in any criminal
    proceeding, except testimony given in any hearing on objections to
    discharge. With that exception, section 7a(10) amounts to a blanket
    grant of use immunity to all debtors. Immunity for other witnesses
    in bankruptcy courts today is governed by part V of title 18.
      The consequences of a claim of privileges by a debtor under
    proposed law and under current law differ as well. Under section
    14c(6) of current law [section 32(c)(6) of former title 11], any
    refusal to answer a material question approved by the court will
    result in the denial of a discharge, even if the refusal is based
    on the privilege against self incrimination. Thus, the debtor is
    confronted with the choice between losing his discharge and opening
    himself up to possible criminal prosecution.
      Under section 727(a)(6) of the proposed title 11, a debtor is
    only denied a discharge if he refuses to testify after having been
    granted immunity. If the debtor claims the privilege and the U. S.
    attorney does not request immunity from the district courts, then
    the debtor may refuse to testify and still retain his right to a
    discharge. It removes the Scylla and Charibdis choice for debtors
    that exists under the Bankruptcy Act [former title 11].

-End-