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Title 11 — BankruptcyRelease 119-73not60

§1326 Payments

Title 11 › Chapter 13— ADJUSTMENT OF DEBTS OF AN INDIVIDUAL WITH REGULAR INCOME › Subchapter II— THE PLAN › § 1326

Last updated Apr 3, 2026|Official source

Summary

The debtor must start making the plan payments within 30 days after the plan is filed or after the court’s order that starts the bankruptcy case, whichever happens first. The payments should match what the plan says the debtor will pay to the trustee. If the debtor still owes money under a personal property lease or is making post‑filing payments to protect a creditor who holds a lien on personal property, those payments can be made directly to the lessor or secured creditor and reduce what the debtor owes the trustee, but the debtor must give proof of the payments (how much and when). The trustee keeps any payments made to them until the court confirms or denies the plan. If the plan is confirmed, the trustee pays out under the plan. If the plan is not confirmed, the trustee returns money to the debtor after paying any unpaid allowed administrative claim under section 503(b). The court can change the required payments before the plan is confirmed. If the debtor keeps leased or financed personal property, the debtor must show the lessor or secured creditor within 60 days that required insurance is in place and must keep that insurance while they have the property. Before or when the trustee pays creditors under the plan, the trustee must first pay (1) any unpaid claim listed in section 507(a)(2), (2) the standing trustee’s fee if one is appointed, and (3) any unpaid chapter 7 trustee compensation from a prior converted or dismissed case. That unpaid chapter 7 compensation must be paid monthly by spreading it over the remaining plan months, with each month’s payment no more than the greater of $25 or 5 percent of the plan’s monthly amount for unsecured nonpriority creditors divided by the number of months in the plan. Unless the plan or the confirmation order says otherwise, the trustee makes the payments to creditors. The unpaid chapter 7 compensation can be collected even if it was discharged earlier, but only as allowed above.

Full Legal Text

Title 11, §1326

Bankruptcy — Source: USLM XML via OLRC

(a)(1)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)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.
(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)(2) of this title;
(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; and
(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; 11 See Adjustment of Dollar Amounts notes below. 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.
(c)Except as otherwise provided in the plan or in the order confirming the plan, the trustee shall make payments to creditors under the plan.
(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).

Legislative History

Notes & Related Subsidiaries

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

Amendments

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 AmendmentAmendment 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.

Effective Date

of 1994 AmendmentAmendment 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 AmendmentAmendment 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. Court Rules and Judicial Documents Adjustment of Dollar AmountsThe 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 Jan. 30, 2025, 90 F.R. 8941, effective Apr. 1, 2025, 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 Jan. 31, 2022, 87 F.R. 6625, effective Apr. 1, 2022, in subsec. (b)(3), dollar amount “25” was adjusted to “25”. By notice dated Feb. 5, 2019, 84 F.R. 3488, effective Apr. 1, 2019, in subsec. (b)(3), dollar amount “25” was adjusted to “25”. By notice dated Feb. 16, 2016, 81 F.R. 8748, effective Apr. 1, 2016, in subsec. (b)(3), dollar amount “25” was adjusted to “25”. By notice dated Feb. 12, 2013, 78 F.R. 12089, effective Apr. 1, 2013, in subsec. (b)(3), dollar amount “25” was adjusted to “25”. By notice dated Feb. 19, 2010, 75 F.R. 8747, effective Apr. 1, 2010, in subsec. (b)(3)(B), dollar amount “25” was adjusted to “25”. By notice dated Feb. 7, 2007, 72 F.R. 7082, effective Apr. 1, 2007, in subsec. (b)(3), dollar amount “25” was adjusted to “25”.

Reference

Citations & Metadata

Citation

11 U.S.C. § 1326

Title 11 — Bankruptcy

Last Updated

Apr 3, 2026

Release point: 119-73not60