Title 11 — Bankruptcy
Chapter 13 — Adjustment of Debts of an Individual with Regular Income
§ 1326. Payments
Statutory text
Unless the court orders otherwise, the debtor shall commence making payments not later than 30 days after the date of the filing of the plan or the order for relief, whichever is earlier, in the amount—
proposed by the plan to the trustee;
scheduled in a lease of personal property directly to the lessor for that portion of the obligation that becomes due after the order for relief, reducing the payments under subparagraph (A) by the amount so paid and providing the trustee with evidence of such payment, including the amount and date of payment; and
that provides adequate protection directly to a creditor holding an allowed claim secured by personal property to the extent the claim is attributable to the purchase of such property by the debtor for that portion of the obligation that becomes due after the order for relief, reducing the payments under subparagraph (A) by the amount so paid and providing the trustee with evidence of such payment, including the amount and date of payment.
A payment made under paragraph (1)(A) shall be retained by the trustee until confirmation or denial of confirmation. If a plan is confirmed, the trustee shall distribute any such payment in accordance with the plan as soon as is practicable. If a plan is not confirmed, the trustee shall return any such payments not previously paid and not yet due and owing to creditors pursuant to paragraph (3) to the debtor, after deducting any unpaid claim allowed under section 503(b).
Subject to section 363, the court may, upon notice and a hearing, modify, increase, or reduce the payments required under this subsection pending confirmation of a plan.
Not later than 60 days after the date of filing of a case under this chapter, a debtor retaining possession of personal property subject to a lease or securing a claim attributable in whole or in part to the purchase price of such property shall provide the lessor or secured creditor reasonable evidence of the maintenance of any required insurance coverage with respect to the use or ownership of such property and continue to do so for so long as the debtor retains possession of such property.
Before or at the time of each payment to creditors under the plan, there shall be paid—
any unpaid claim of the kind specified in section 507(a)(2) of this title;
if a standing trustee appointed under section 586(b) of title 28 is serving in the case, the percentage fee fixed for such standing trustee under section 586(e)(1)(B) of title 28; and
if a chapter 7 trustee has been allowed compensation due to the conversion or dismissal of the debtor’s prior case pursuant to section 707(b), and some portion of that compensation remains unpaid in a case converted to this chapter or in the case dismissed under section 707(b) and refiled under this chapter, the amount of any such unpaid compensation, which shall be paid monthly—
by prorating such amount over the remaining duration of the plan; and
by monthly payments not to exceed the greater of—
$25; 1 or
the amount payable to unsecured nonpriority creditors, as provided by the plan, multiplied by 5 percent, and the result divided by the number of months in the plan.
Except as otherwise provided in the plan or in the order confirming the plan, the trustee shall make payments to creditors under the plan.
Notwithstanding any other provision of this title—
compensation referred to in subsection (b)(3) is payable and may be collected by the trustee under that paragraph, even if such amount has been discharged in a prior case under this title; and
such compensation is payable in a case under this chapter only to the extent permitted by subsection (b)(3).
Footnotes
- 1 See Adjustment of Dollar Amounts notes below.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Pub. L. 95–598 · 92 Stat. 2549
Enacted · 11 U.S.C. § 1326
Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2650
Source evidence
Code source credit
Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2650Pub. L. 98–353 § 318(a)(2) · 98 Stat. 333
Redesignated · 11 U.S.C. § 1326(a)
Pub. L. 98–353, § 318(a)(2), added subsec. (a). Former subsec. (a) redesignated (b)
Source evidence
Code amendment note
Subsec. (a). Pub. L. 98–353, § 318(a)(2), added subsec. (a). Former subsec. (a) redesignated (b).Enacted provision · exact public law section
(2) by inserting before such subsections the following new subsection: “(a) (1) Unless the court orders otherwise, the debtor shall commence making the payments proposed by a plan within 30 days after the plan is filed. “(2) A payment made under this subsection shall be retained by the trustee until confirmation or denial of confirmation of a plan. If a plan is confirmed, the trustee shall distribute any such payment in accordance with the plan. If a plan is not confirmed, the trustee shall return any such payments to the debtor, after deducting any unpaid claim allowed under section 503(b) of this title.”.Pub. L. 98–353 § 318(a)(1) · 98 Stat. 333
Redesignated · 11 U.S.C. § 1326(b)
Pub. L. 98–353, § 318(a)(1), redesignated subsec. (a) as (b). Former subsec. (b) redesignated (c)
Source evidence
Code amendment note
Subsec. (b). Pub. L. 98–353, § 318(a)(1), redesignated subsec. (a) as (b). Former subsec. (b) redesignated (c).Enacted provision · exact public law section
(1) by redesignating subsections (a) and (b) as subsections (h) and (c), respectively, andPub. L. 98–353 § 531 · 98 Stat. 333
Inserted · 11 U.S.C. § 1326(b)(2)
Pub. L. 98–353, § 531, inserted “of this title” after “1302(d)”
Source evidence
Code amendment note
Subsec. (b)(2). Pub. L. 98–353, § 531, inserted “of this title” after “1302(d)”.Enacted provision · exact public law section
Sec. 531. Section 1326(b)(2) of title 11 of the United States Code as amended by section 318 is amended by inserting “of this title” after Ante, p. 357. “1302(d)”.Pub. L. 98–353 § 318(a)(1) · 98 Stat. 333
Redesignated · 11 U.S.C. § 1326(c)
Pub. L. 98–353, § 318(a)(1), redesignated former subsec. (b) as (c)
Source evidence
Code amendment note
Subsec. (c). Pub. L. 98–353, § 318(a)(1), redesignated former subsec. (b) as (c).Enacted provision · exact public law section
(1) by redesignating subsections (a) and (b) as subsections (h) and (c), respectively, andBankruptcy Judges, United States Trustees, and Family Farmer Bankruptcy Act of 1986
Pub. L. 99–554 § 283(z) · 100 Stat. 3088
Substituted · 11 U.S.C. § 1326(a)(2)
Pub. L. 99–554, § 283(z), substituted “payment” for “payments” in last sentence
Source evidence
Code amendment note
Subsec. (a)(2). Pub. L. 99–554, § 283(z), substituted “payment” for “payments” in last sentence.Enacted provision · exact public law section
(z) Section 1326(a)(2) of title 11, United States Code, is amended by striking out “payments” and inserting in lieu thereof “payment”.Bankruptcy Judges, United States Trustees, and Family Farmer Bankruptcy Act of 1986
Pub. L. 99–554 § 230 · 100 Stat. 3088
Amended · 11 U.S.C. § 1326(b)
Pub. L. 99–554, § 230, amended subsec. (b) generally
Substituted · 11 U.S.C. § 1326(b)
Pub. L. 99–554, § 230, substituting “586(b) of title 28” for “1302(d) of this title” in par. (2)
Substituted · 11 U.S.C. § 1326(b)
Pub. L. 99–554, § 230, substituting “586(e)(1)(B) of title 28” for “1302(e) of this title” in par. (2)
Source evidence
Code amendment note
Subsec. (b). Pub. L. 99–554, § 230, amended subsec. (b) generally, substituting “586(b) of title 28” for “1302(d) of this title” and “586(e)(1)(B) of title 28” for “1302(e) of this title” in par. (2).Enacted provision · exact public law section
SEC. 230. PAYMENTS. Section 1326(b) of title 11, United States Code, is amended to read as follows: “(b) Before or at the time of each payment to creditors under the plan, there shall be paid— “(1) any unpaid claim of the kind specified in section 507(a)(1) of this title; and “(2) if a standing trustee appointed under section 586(b) of title 28 is serving in the case, the percentage fee fixed for such standing trustee under section 586(e)(1)(B) of title 28.”.Bankruptcy Reform Act of 1994
Pub. L. 103–394 title III § 307 · 108 Stat. 4106
Inserted · 11 U.S.C. § 1326(a)(2)
Pub. L. 103–394 inserted “as soon as practicable” before period at end of second sentence
Source evidence
Code amendment note
Subsec. (a)(2). Pub. L. 103–394 inserted “as soon as practicable” before period at end of second sentence.Enacted provision · exact public law section
SEC. 307. PAYMENTS UNDER CHAPTER 13. Section 1326(a)(2) of title 11, United States Code, is amended in the second sentence by striking the period and inserting “as soon as practicable.”.Pub. L. 109–8 § 309(c)(2) · 119 Stat. 23
Amended · 11 U.S.C. § 1326(a)
Pub. L. 109–8, § 309(c)(2), amended subsec. (a) generally. Prior to amendment subsec. (a) read as follows:
Source evidence
Code amendment note
Subsec. (a). Pub. L. 109–8, § 309(c)(2), amended subsec. (a) generally. Prior to amendment subsec. (a) read as follows:“(a)(1) Unless the court orders otherwise, the debtor shall commence making the payments proposed by a plan within 30 days after the plan is filed. “(2) A payment made under this subsection shall be retained by the trustee until confirmation or denial of confirmation of a plan. If a plan is confirmed, the trustee shall distribute any such payment in accordance with the plan as soon as practicable. If a plan is not confirmed, the trustee shall return any such payment to the debtor, after deducting any unpaid claim allowed under section 503(b) of this title.”
Enacted provision · exact public law section
(2) Payments.— Section 1326(a) of title 11, United States Code, is amended to read as follows: “(a) (1) Deadline. Unless the court orders otherwise, the debtor shall commence making payments not later than 30 days after the date of the filing of the plan or the order for relief, whichever is earlier, in the amount— “(A) proposed by the plan to the trustee; “(B) scheduled in a lease of personal property directly to the lessor for that portion of the obligation that becomes due after the order for relief, reducing the payments under subparagraph (A) by the amount so paid and providing the trustee with evidence of such payment, including the amount and date of payment; and “(C) that provides adequate protection directly to a creditor holding an allowed claim secured by personal property to the extent the claim is attributable to the purchase of such property by the debtor for that portion of the obligation that becomes due after the order for relief, reducing the payments under subparagraph (A) by the amount so paid and providing the trustee with evidence of such payment, including the amount and date of payment. “(2) A payment made under paragraph (1)(A) shall be retained by the trustee until confirmation or denial of confirmation. If a plan is confirmed, the trustee shall distribute any such payment in accordance with the plan as soon as is practicable. If a plan is not confirmed, the trustee shall return any such payments not previously paid and not yet due and owing to creditors pursuant to paragraph (3) to the debtor, after deducting any unpaid claim allowed under section 503(b). “(3) Subject to section 363, the court may, upon notice and a hearing, modify, increase, or reduce the payments required under this subsection pending confirmation of a plan. “(4) Deadline. Not later than 60 days after the date of filing of a case under this chapter, a debtor retaining possession of personal property subject to a lease or securing a claim attributable in whole or in part to the purchase price of such property shall provide the lessor or secured creditor reasonable evidence of the maintenance of any required insurance coverage with respect to the use or ownership of such property and continue to do so for so long as the debtor retains possession of such property.” .Effective date note
Amendment by Pub. L. 109–8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of this title.Pub. L. 109–8 § 1502(a)(10) · 119 Stat. 23
Substituted · 11 U.S.C. § 1326(b)(1)
Pub. L. 109–8, § 1502(a)(10), substituted “507(a)(2)” for “507(a)(1)”
Source evidence
Code amendment note
Subsec. (b)(1). Pub. L. 109–8, § 1502(a)(10), substituted “507(a)(2)” for “507(a)(1)”.Enacted provision · exact public law section
(10) in section 1326(b)(1) by striking “507(a)(1)” and inserting “507(a)(2)”.Effective date note
Amendment by Pub. L. 109–8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of this title.Pub. L. 109–8 § 1224(1) · 119 Stat. 23
Added · 11 U.S.C. § 1326(b)(3)
Pub. L. 109–8, § 1224(1), added par. (3)
Source evidence
Code amendment note
Subsec. (b)(3). Pub. L. 109–8, § 1224(1), added par. (3).Enacted provision · exact public law section
(1) in subsection (b)— (A) in paragraph (1), by striking “and”; (B) in paragraph (2), by striking the period at the end and inserting “; and”; and (C) by adding at the end the following: “(3) if a chapter 7 trustee has been allowed compensation due to the conversion or dismissal of the debtor’s prior case pursuant to section 707(b), and some portion of that compensation remains unpaid in a case converted to this chapter or in the case dismissed under section 707(b) and refiled under this chapter, the amount of any such unpaid compensation, which shall be paid monthly— “(A) by prorating such amount over the remaining duration of the plan; and “(B) by monthly payments not to exceed the greater of— “(i) $25; or “(ii) the amount payable to unsecured nonpriority creditors, as provided by the plan, multiplied by 5 percent, and the result divided by the number of months in the plan.” ; andEffective date note
Amendment by Pub. L. 109–8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of this title.Pub. L. 109–8 § 1224(2) · 119 Stat. 23
Added · 11 U.S.C. § 1326(d)
Pub. L. 109–8, § 1224(2), added subsec. (d)
Source evidence
Code amendment note
Subsec. (d). Pub. L. 109–8, § 1224(2), added subsec. (d).Enacted provision · exact public law section
(2) by adding at the end the following: “(d) Notwithstanding any other provision of this title— “(1) compensation referred to in subsection (b)(3) is payable and may be collected by the trustee under that paragraph, even if such amount has been discharged in a prior case under this title; and “(2) such compensation is payable in a case under this chapter only to the extent permitted by subsection (b)(3).” .Effective date note
Amendment by Pub. L. 109–8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of this title.
13 of 14 references resolved to an enrolled provision · 1 partial
Notes
Historical and Revision Notes
legislative statements
Section 1326(a)(2) of the House amendment adopts a comparable provision contained in the House bill providing for standing trustees.
senate report no. 95–989
Section 1326 supplements the priorities provisions of section 507. Subsection (a) requires accrued costs of administration and filing fees, as well as fees due the chapter 13 trustee, to be disbursed before payments to creditors under the plan. Subsection (b) makes it clear that the chapter 13 trustee is normally to make distribution to creditors of the payments made under the plan by the debtor.
house report no. 95–595
Subsection (a) requires that before or at the time of each payment any outstanding administrative expenses [and] any percentage fee due for a private standing chapter 13 trustee be paid in full.
Editorial Notes
Amendments1984–2005 · 4 rounds
2005
Subsec. (a). Pub. L. 109–8, § 309(c)(2), amended subsec. (a) generally. Prior to amendment subsec. (a) read as follows:
“(a)(1) Unless the court orders otherwise, the debtor shall commence making the payments proposed by a plan within 30 days after the plan is filed.
“(2) A payment made under this subsection shall be retained by the trustee until confirmation or denial of confirmation of a plan. If a plan is confirmed, the trustee shall distribute any such payment in accordance with the plan as soon as practicable. If a plan is not confirmed, the trustee shall return any such payment to the debtor, after deducting any unpaid claim allowed under section 503(b) of this title.”
Subsec. (b)(1). Pub. L. 109–8, § 1502(a)(10), substituted “507(a)(2)” for “507(a)(1)”.
Subsec. (b)(3). Pub. L. 109–8, § 1224(1), added par. (3).
Subsec. (d). Pub. L. 109–8, § 1224(2), added subsec. (d).
1994
Subsec. (a)(2). Pub. L. 103–394 inserted “as soon as practicable” before period at end of second sentence.
1986
Subsec. (a)(2). Pub. L. 99–554, § 283(z), substituted “payment” for “payments” in last sentence.
Subsec. (b). Pub. L. 99–554, § 230, amended subsec. (b) generally, substituting “586(b) of title 28” for “1302(d) of this title” and “586(e)(1)(B) of title 28” for “1302(e) of this title” in par. (2).
1984
Subsec. (a). Pub. L. 98–353, § 318(a)(2), added subsec. (a). Former subsec. (a) redesignated (b).
Subsec. (b). Pub. L. 98–353, § 318(a)(1), redesignated subsec. (a) as (b). Former subsec. (b) redesignated (c).
Subsec. (b)(2). Pub. L. 98–353, § 531, inserted “of this title” after “1302(d)”.
Subsec. (c). Pub. L. 98–353, § 318(a)(1), redesignated former subsec. (b) as (c).
Statutory Notes and Related Subsidiaries
Effective Date of 2005 Amendment
Amendment by Pub. L. 109–8 effective 180 days after , and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of this title.
Effective Date of 1994 Amendment
Amendment by Pub. L. 103–394 effective , and not applicable with respect to cases commenced under this title before , see section 702 of Pub. L. 103–394, set out as a note under section 101 of this title.
Effective Date of 1986 Amendment
Effective date and applicability of amendment by section 230 of Pub. L. 99–554 dependent upon the judicial district involved, see section 302(d), (e) of Pub. L. 99–554, set out as a note under section 581 of Title 28, Judiciary and Judicial Procedure.
Amendment by section 283 of Pub. L. 99–554 effective 30 days after , see section 302(a) of Pub. L. 99–554.
Effective Date of 1984 Amendment
Amendment by Pub. L. 98–353 effective with respect to cases filed 90 days after , see section 552(a) of Pub. L. 98–353, set out as a note under section 101 of this title.
Court Rules and Judicial Documents
Adjustment of Dollar Amounts
The dollar amounts specified in this section were adjusted by notices of the Judicial Conference of the United States pursuant to section 104 of this title as follows:
By notice dated , 90 F.R. 8941, effective , in subsec. (b)(3), dollar amount “25” was adjusted to “25”. See notice of the Judicial Conference of the United States set out as a note under section 104 of this title.
By notice dated , 87 F.R. 6625, effective , in subsec. (b)(3), dollar amount “25” was adjusted to “25”.
By notice dated , 84 F.R. 3488, effective , in subsec. (b)(3), dollar amount “25” was adjusted to “25”.
By notice dated , 81 F.R. 8748, effective , in subsec. (b)(3), dollar amount “25” was adjusted to “25”.
By notice dated , 78 F.R. 12089, effective , in subsec. (b)(3), dollar amount “25” was adjusted to “25”.
By notice dated , 75 F.R. 8747, effective , in subsec. (b)(3)(B), dollar amount “25” was adjusted to “25”.
By notice dated , 72 F.R. 7082, effective , in subsec. (b)(3), dollar amount “25” was adjusted to “25”.
Credits
1978–2005 · 5 acts
- 1978Pub. L. 95–598, , 92 Stat. 2650
- 1984Pub. L. 98–353, title III, §§ 318(a), 531, , 98 Stat. 357, 389
- 1986Pub. L. 99–554, title II, §§ 230, 283(z), , 100 Stat. 3103, 3118
- 1994Pub. L. 103–394, title III, § 307, , 108 Stat. 4135
- 2005Pub. L. 109–8, title III, § 309(c)(2), title XII, § 1224, title XV, § 1502(a)(10), , 119 Stat. 83, 199, 217.
Show as published
(Pub. L. 95–598, , 92 Stat. 2650; Pub. L. 98–353, title III, §§ 318(a), 531, , 98 Stat. 357, 389; Pub. L. 99–554, title II, §§ 230, 283(z), , 100 Stat. 3103, 3118; Pub. L. 103–394, title III, § 307, , 108 Stat. 4135; Pub. L. 109–8, title III, § 309(c)(2), title XII, § 1224, title XV, § 1502(a)(10), , 119 Stat. 83, 199, 217.)