§1194 Payments

Summary

The trustee must keep any payments they get until the court approves or rejects the debtor’s plan. If the plan is approved, the trustee pays according to the plan. If the plan is rejected, the trustee returns the money to the debtor after subtracting unpaid claims allowed under section 503(b), payments made to protect secured creditors’ interests in property, and the trustee’s fee. If a plan is approved under section 1191(b), the trustee must pay creditors under that plan unless the plan or the confirmation order says otherwise. Before approval, a court can allow the trustee, after notice and a hearing, to pay secured creditors to protect their property interests.