Order for Relief
An Order for Relief is the Bankruptcy Code event that places a debtor under the operative relief of a particular bankruptcy chapter, occurring automatically upon a voluntary filing and by court order in a qualifying involuntary case.
How it works
In a voluntary case, Section 301 provides that commencement itself constitutes the Order for Relief. In an involuntary case, Section 303(h) governs when the court enters the order if the petition is uncontested or the statutory grounds are proven. Section 348 also provides that conversion constitutes an Order for Relief under the chapter to which the case is converted, while generally preserving the original Petition Date.
Voluntary cases do not require a separate order
Section 301(b) states that commencement of a voluntary case constitutes the Order for Relief under that chapter.
Involuntary cases can have a gap period
An involuntary petition can commence a case before the court enters the Order for Relief. Section 303 contains special rules for the period between those events.
A contested involuntary petition requires adjudication
If the petition is timely contested, the court applies Section 303(h) rather than treating creditor allegations as established automatically.
Conversion creates relief under the new chapter
Section 348(a) provides that conversion constitutes an Order for Relief under the chapter to which the case is converted, while generally not changing the original filing date.
Worked example: two dates, different functions
An involuntary petition is filed June 1 and the court enters the Order for Relief on July 15. June 1 is still the Petition Date, while July 15 marks entry of relief after the contested gap period.
Order for Relief is not a Confirmation Order
The Order for Relief begins or changes the operative bankruptcy chapter. A Confirmation Order later approves a Chapter 11 plan after separate statutory requirements are satisfied.
Common mistakes
Assuming every Order for Relief is a signed order entered on the docket; equating the term with plan confirmation; and assuming conversion resets the original Petition Date.
Example
Company A voluntarily files Chapter 11 on September 1, so the filing itself is the Order for Relief. Company B is placed into involuntary Chapter 11 on September 1 but contests the petition; its Order for Relief may not occur until the court later rules under Section 303(h).
Example
Company A voluntarily files Chapter 11 on September 1, so the filing itself is the Order for Relief. Company B is placed into involuntary Chapter 11 on September 1 but contests the petition; its Order for Relief may not occur until the court later rules under Section 303(h).
Professional note
Do not treat Petition Date and Order for Relief as universally identical. They coincide in ordinary voluntary cases but can diverge in an involuntary case or acquire special meaning after conversion.
Related terms
- Confirmation Order
A Confirmation Order is the bankruptcy court order confirming a Chapter 11 plan after the court determines that the applicable confirmation requirements have been satisfied.
- Voluntary Petition
A Voluntary Petition is the bankruptcy petition filed by an eligible debtor to commence its own bankruptcy case under the chosen chapter of the Bankruptcy Code.
- Involuntary Bankruptcy
Involuntary Bankruptcy is a bankruptcy case initiated by qualifying creditors or other statutorily authorized petitioners against an eligible debtor under Bankruptcy Code Section 303 rather than by the debtor voluntarily filing its own case.
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