CHAPTER 13 ADJUSTMENT OF DEBTS OF AN INDIVIDUAL WITH REGULAR INCOME
Sub Chapter II The Plan
Sec. 1326. Payments
(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
(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
(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.
(c) Except as otherwise provided in the plan or in the order
confirming the plan, the trustee shall make payments to creditors under
(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2650; Pub. L. 98-353, title III,
Secs. 318(a), 531, July 10, 1984, 98 Stat. 357, 389; Pub. L. 99-554,
title II, Secs. 230, 283(z), Oct. 27, 1986, 100 Stat. 3103, 3118; Pub.
L. 103-394, title III, Sec. 307, Oct. 22, 1994, 108 Stat. 4135.)
Historical and Revision Notes
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.
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, Sec. 283(z), substituted
``payment'' for ``payments'' in last sentence.
Subsec. (b). Pub. L. 99-554, Sec. 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, Sec. 318(a)(2), added subsec.
(a). Former subsec. (a) redesignated (b).
Subsec. (b). Pub. L. 98-353, Sec. 318(a)(1), redesignated subsec.
(a) as (b). Former subsec. (b) redesignated (c).
Subsec. (b)(2). Pub. L. 98-353, Sec. 531, inserted ``of this title''
Subsec. (c). Pub. L. 98-353, Sec. 318(a)(1), redesignated former
subsec. (b) as (c).
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 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
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 347, 1302, 1307 of this