Bankruptcy Forms: Filing Bankruptcy Chapter 7 Bankruptcy Software Chapter 13

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TITLE 11–BANKRUPTCY

CHAPTER 13– ADJUSTMENT OF DEBTS OF AN INDIVIDUAL WITH REGULAR INCOME

Sub Chapter – Officers, Administration and the Estate

Sec. 1302. Trustee

If the United States trustee appoints an individual under 
section 586(b) of title 28 to serve as standing trustee in cases under 
this chapter and if such individual qualifies under section 322 of this 
title, then such individual shall serve as trustee in the case. 
Otherwise, the United States trustee shall appoint one disinterested 
person to serve as trustee in the case or the United States trustee may 
serve as a trustee in the case.
    (b) The trustee shall--
        (1) perform the duties specified in sections 704(2), 704(3), 
    704(4), 704(5), 704(6), 704(7), and 704(9) of this title;
        (2) appear and be heard at any hearing that concerns--
            (A) the value of property subject to a lien;
            (B) confirmation of a plan; or
            (C) modification of the plan after confirmation;

        (3) dispose of, under regulations issued by the Director of the 
    Administrative Office of the United States Courts, moneys received 
    or to be received in a case under chapter XIII of the Bankruptcy 
    Act;
        (4) advise, other than on legal matters, and assist the debtor 
    in performance under the plan; and
        (5) ensure that the debtor commences making timely payments 
    under section 1326 of this title.

    (c) If the debtor is engaged in business, then in addition to the 
duties specified in subsection (b) of this section, the trustee shall 
perform the duties specified in sections 1106(a)(3) and 1106(a)(4) of 
this title.

(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2645; Pub. L. 98-353, title III, 
Secs. 314, 525, July 10, 1984, 98 Stat. 356, 388; Pub. L. 99-554, title 
II, Secs. 228, 283(w), Oct. 27, 1986, 100 Stat. 3103, 3118; Pub. L. 103-
394, title V, Sec. 501(d)(37), Oct. 22, 1994, 108 Stat. 4147.)


                      Historical and Revision Notes

                         legislative statements

    Section 1302 of the House amendment adopts a provision contained in 
the Senate amendment instead of the position taken in the House bill. 
Sections 1302(d) and (e) are modeled on the standing trustee system 
contained in the House bill with the court assuming supervisory 
functions in districts not under the pilot program.


                        senate report no. 95-989

    The principal administrator in a chapter 13 case is the chapter 13 
trustee. Experience under chapter XIII of the Bankruptcy Act [chapter 13 
of former title 11] has shown that the more efficient and effective wage 
earner programs have been conducted by standing chapter XIII trustees 
who exercise a broad range of responsibilities in both the design and 
the effectuation of debtor plans.
    Subsection (a) provides administrative flexibility by permitting the 
bankruptcy judge to appoint an individual from the panel of trustees 
established pursuant to 28 U.S.C. Sec. 604(f) and qualified under 
section 322 of title 11, either to serve as a standing trustee in all 
chapter 13 cases filed in the district or a portion thereof, or to serve 
in a single case.
    Subsection (b)(1) makes it clear that the chapter 13 trustee is no 
mere disbursing agent of the monies paid to him by the debtor under the 
plan [section 1322(a)(1)], by imposing upon him certain relevant duties 
of a liquidation trustee prescribed by section 704 of this title.
    Subsection (b)(2) requires the chapter 13 trustee to appear before 
and be heard by the bankruptcy court whenever the value of property 
secured by a lien or the confirmation or modification of a plan after 
confirmation as provided by sections 1323-1325 is considered by the 
court.
    Subsection (b)(3) requires the chapter 13 trustee to advise and 
counsel the debtor while under chapter 13, except on matters more 
appropriately left to the attorney for the debtor. The chapter 13 
trustee must also assist the debtor in performance under the plan by 
attempting to tailor the requirements of the plan to the changing needs 
and circumstances of the debtor during the extension period.
    Subsection (c) imposes on the trustee in a chapter 13 case filed by 
a debtor engaged in business the investigative and reporting duties 
normally required of a chapter 11 debtor or trustee as prescribed by 
section 1106(a)(3) and (4).


                         house report no. 95-595

    Subsection (d) gives the trustee an additional duty if the debtor is 
engaged in business, as defined in section 1304. The trustee must 
perform the duties specified in sections 1106(a)(3) and 1106(a)(4), 
relating to investigation of the debtor.

                       References in Text

    Chapter XIII of the Bankruptcy Act, referred to in subsec. (b)(3), 
is chapter XIII of act July 1, 1898, ch. 541, as added June 22, 1938, 
ch. 575, Sec. 1, 52 Stat. 930, which was classified to chapter 13 
(Sec. 1001 et seq.) of former Title 11.


                               Amendments

    1994--Subsec. (b)(3). Pub. L. 103-394 struck out ``and'' at end.
    1986--Subsec. (a). Pub. L. 99-554, Sec. 228(1), amended subsec. (a) 
generally. Prior to amendment, subsec. (a) read as follows: ``If the 
court has appointed an individual under subsection (d) of this section 
to serve as standing trustee in cases under this chapter and if such 
individual qualifies under section 322 of this title, then such 
individual shall serve as trustee in the case. Otherwise, the court 
shall appoint a person to serve as trustee in the case.''
    Subsec. (d). Pub. L. 99-554, Sec. 228(2), struck out subsec. (d) 
which read as follows: ``If the number of cases under this chapter 
commenced in a particular judicial district so warrant, the court may 
appoint one or more individuals to serve as standing trustee for such 
district in cases under this chapter.''
    Subsec. (e). Pub. L. 99-554, Sec. 283(w), which directed the 
amendment of par. (1) by substituting ``set for such individual'' for 
``fix'' could not be executed in view of the repeal of subsec. (e) by 
section 228(2) of Pub. L. 99-554. See 1984 Amendment note below.
    Pub. L. 99-554, Sec. 228(2), struck out subsec. (e) which read as 
follows:
    ``(1) A court that has appointed an individual under subsection (d) 
of this section to serve as standing trustee in cases under this chapter 
shall set for such individual--
        ``(A) a maximum annual compensation, not to exceed the lowest 
    annual rate of basic pay in effect for grade GS-16 of the General 
    Schedule prescribed under section 5332 of title 5; and
        ``(B) a percentage fee, not to exceed ten percent, based on such 
    maximum annual compensation and the actual, necessary expenses 
    incurred by such individual as standing trustee.
    ``(2) Such individual shall collect such percentage fee from all 
payments under plans in the cases under this chapter for which such 
individual serves as standing trustee. Such individual shall pay 
annually to the Treasury--
        ``(A) any amount by which the actual compensation received by 
    such individual exceeds five percent of all such payments made under 
    plans in cases under this chapter for which such individual serves 
    as standing trustee; and
        ``(B) any amount by which the percentage fee fixed under 
    paragraph (1)(B) of this subsection for all such cases exceeds--
            ``(i) such individual's actual compensation for such cases, 
        as adjusted under subparagraph (A) of this paragraph; plus
            ``(ii) the actual, necessary expenses incurred by such 
        individual as standing trustee in such cases.''
    1984--Subsec. (b)(1). Pub. L. 98-353, Sec. 314(1), substituted 
``704(7), and 704(9) of this title'' for ``and 704(8) of this title''.
    Subsec. (b)(2). Pub. L. 98-353, Sec. 314(2), struck out ``and'' at 
the end.
    Subsec. (b)(3) to (5). Pub. L. 98-353, Sec. 525(a), added par. (3) 
and redesignated former pars. (3) and (4) as (4) and (5), respectively.
    Pub. L. 98-353, Sec. 314(3), (4), substituted ``; and'' for the 
period at end of par. (3) and added par. (4).
    Subsec. (e)(1). Pub. L. 98-353, Sec. 525(b)(1), which directed the 
amendment of par. (4) by substituting ``set for such individual'' for 
``fix'' was executed to par. (1) as the probable intent of Congress.
    Subsec. (e)(1)(A). Pub. L. 98-353, Sec. 525(b)(2), struck out ``for 
such individual'' after ``a maximum annual compensation''.
    Subsec. (e)(2)(A). Pub. L. 98-353, Sec. 525(b)(3), substituted 
``received by'' for ``of'', and ``of all such payments made'' for ``upon 
all payments''.


                    Effective Date of 1994 Amendment

    Amendment by Pub. L. 103-394 effective Oct. 22, 1994, and not 
applicable with respect to cases commenced under this title before Oct. 
22, 1994, 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 228 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 
Oct. 27, 1986, 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 July 10, 1984, see section 552(a) of Pub. L. 98-353, set out 
as a note under section 101 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 322, 326, 546, 557 of this 
title.

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