# Justice Manual § 4-3.220: Claims in Conjunction With Bankruptcy Code Proceedings

> Federal · Agency guidance · In force

URL: https://www.frixlaw.com/law-library/statutes/JM_S4-3.220

## Section

- **Citation:** Justice Manual § 4-3.220
- **Heading:** Claims in Conjunction With Bankruptcy Code Proceedings
- **Jurisdiction:** Federal
- **Kind:** Agency guidance
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** DOJ Justice Manual / Title 4: Civil / 4-3.000 - Compromising And Closing / Justice Manual § 4-3.220

## Text

The acceptance of a plan of reorganization under the Bankruptcy Code by the United States Attorney amounts to the compromise of a claim by the United States. The same limitations and standards as described in
JM 4-3.200
ggovern compromises under the Bankruptcy Code. For purposes of determining the United States Attorneys' authority to accept a plan, the term gross amount of the original claim as used in Civil Division Directive No. 1-15, means liquidation value. Liquidation value is the forced sale value of the collateral, if any, securing the claims plus the dividend likely to be paid for the unsecured portion of the claims in an actual or hypothetical liquidation of the bankruptcy estate. If the debtor fails to provide the information needed to consider the plan, or if inadequate time is allowed to obtain any required Department of Justice approvals for the compromise, the United States Attorney should file an objection to confirmation of the plan with the bankruptcy court.

[updated April 2018]

## Nearby sections

- [Justice Manual § 4-3.100 Pursuit of Claims Against Individuals](https://www.frixlaw.com/law-library/statutes/JM_S4-3.100.md)
- [Justice Manual § 4-3.110 Delegations of the Attorney General's Authority to Compromise and Close](https://www.frixlaw.com/law-library/statutes/JM_S4-3.110.md)
- [Justice Manual § 4-3.120 General Redelegation of the Attorney General's Authority to Compromise and Close](https://www.frixlaw.com/law-library/statutes/JM_S4-3.120.md)
- [Justice Manual § 4-3.200 Bases for the Compromising or Closing of Claims Involving the United States](https://www.frixlaw.com/law-library/statutes/JM_S4-3.200.md)
- [Justice Manual § 4-3.210 Compromising Claims Against a Going Business Concern](https://www.frixlaw.com/law-library/statutes/JM_S4-3.210.md)
- [Justice Manual § 4-3.220 Claims in Conjunction With Bankruptcy Code Proceedings](https://www.frixlaw.com/law-library/statutes/JM_S4-3.220.md)
- [Justice Manual § 4-3.230 Bases for Closing Claims Arising Out of Judgments in Favor of the United States by Returning Those Claims to the Client Agencies](https://www.frixlaw.com/law-library/statutes/JM_S4-3.230.md)
- [Justice Manual § 4-3.300 Memoranda by United States Attorney Explaining the Compromising or Closing of Claims Within the United States Attorney's Authority](https://www.frixlaw.com/law-library/statutes/JM_S4-3.300.md)
- [Justice Manual § 4-3.320 Memoranda Containing the United States Attorney's Recommendations for the Compromising or Closing of Claims Beyond His/Her Authority](https://www.frixlaw.com/law-library/statutes/JM_S4-3.320.md)
- [Justice Manual § 4-3.400 Consummation of Compromise of Claims of the United States—Generally](https://www.frixlaw.com/law-library/statutes/JM_S4-3.400.md)
- [Justice Manual § 4-3.410 Prohibition on Confidential Settlements](https://www.frixlaw.com/law-library/statutes/JM_S4-3.410.md)
- [Justice Manual § 4-3.412 Dismissal Where Suit Has Been Filed](https://www.frixlaw.com/law-library/statutes/JM_S4-3.412.md)
- [Justice Manual § 4-3.420 Consummation of Compromise of Judgments in Favor of the United States](https://www.frixlaw.com/law-library/statutes/JM_S4-3.420.md)
- [Justice Manual § 4-3.430 Payment of Compromises—Compromise Payable by Client Agency or Insurer](https://www.frixlaw.com/law-library/statutes/JM_S4-3.430.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/JM_S4-3.220. Check the current official text before relying on it. Not legal advice.