29th Mar 2016

-CITE-
11 USC CHAPTER 13 – ADJUSTMENT OF DEBTS OF AN INDIVIDUAL
WITH REGULAR INCOME                                                                                   01/07/2011

-EXPCITE-
TITLE 11 – BANKRUPTCY
CHAPTER 13 – ADJUSTMENT OF DEBTS OF AN INDIVIDUAL WITH REGULAR
INCOME

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

-MISC1-
SUBCHAPTER I – OFFICERS, ADMINISTRATION, AND THE ESTATE
Sec.
1301. Stay of action against codebtor.
1302. Trustee.
1303. Rights and powers of debtor.
1304. Debtor engaged in business.
1305. Filing and allowance of postpetition claims.
1306. Property of the estate.
1307. Conversion or dismissal.
1308. Filing of prepetition tax returns.

SUBCHAPTER II – THE PLAN
1321. Filing of plan.
1322. Contents of plan.
1323. Modification of plan before confirmation.
1324. Confirmation hearing.
1325. Confirmation of plan.
1326. Payments.
1327. Effect of confirmation.
1328. Discharge.
1329. Modification of plan after confirmation.
1330. Revocation of an order of confirmation.

AMENDMENTS
2005 – Pub. L. 109-8, title VII, Sec. 716(b)(2), Apr. 20, 2005,
119 Stat. 130, added item 1308.

-End-

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11 USC SUBCHAPTER I – OFFICERS, ADMINISTRATION, AND THE
ESTATE 01/07/2011

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TITLE 11 – BANKRUPTCY
CHAPTER 13 – ADJUSTMENT OF DEBTS OF AN INDIVIDUAL WITH REGULAR
INCOME
SUBCHAPTER I – OFFICERS, ADMINISTRATION, AND THE ESTATE

-HEAD-
SUBCHAPTER I – OFFICERS, ADMINISTRATION, AND THE ESTATE

-End-

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11 USC Sec. 1301 01/07/2011

-EXPCITE-
TITLE 11 – BANKRUPTCY
CHAPTER 13 – ADJUSTMENT OF DEBTS OF AN INDIVIDUAL WITH REGULAR
INCOME
SUBCHAPTER I – OFFICERS, ADMINISTRATION, AND THE ESTATE

-HEAD-
Sec. 1301. Stay of action against codebtor

-STATUTE-
(a) Except as provided in subsections (b) and (c) of this
section, after the order for relief under this chapter, a creditor
may not act, or commence or continue any civil action, to collect
all or any part of a consumer debt of the debtor from any
individual that is liable on such debt with the debtor, or that
secured such debt, unless –
(1) such individual became liable on or secured such debt in
the ordinary course of such individual’s business; or
(2) the case is closed, dismissed, or converted to a case under
chapter 7 or 11 of this title.

(b) A creditor may present a negotiable instrument, and may give
notice of dishonor of such an instrument.
(c) On request of a party in interest and after notice and a
hearing, the court shall grant relief from the stay provided by
subsection (a) of this section with respect to a creditor, to the
extent that –
(1) as between the debtor and the individual protected under
subsection (a) of this section, such individual received the
consideration for the claim held by such creditor;
(2) the plan filed by the debtor proposes not to pay such
claim; or
(3) such creditor’s interest would be irreparably harmed by
continuation of such stay.

(d) Twenty days after the filing of a request under subsection
(c)(2) of this section for relief from the stay provided by
subsection (a) of this section, such stay is terminated with
respect to the party in interest making such request, unless the
debtor or any individual that is liable on such debt with the
debtor files and serves upon such party in interest a written
objection to the taking of the proposed action.

-SOURCE-
(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2645; Pub. L. 98-353, title
III, Secs. 313, 524, July 10, 1984, 98 Stat. 355, 388.)

-MISC1-
HISTORICAL AND REVISION NOTES

LEGISLATIVE STATEMENTS
Section 1301 of the House amendment is identical with the
provision contained in section 1301 of the House bill and adopted
by the Senate amendment. Section 1301(c)(1) indicates that a basis
for lifting the stay is that the debtor did not receive
consideration for the claim by the creditor, or in other words, the
debtor is really the “codebtor.” As with other sections in title
11, the standard of receiving consideration is a general rule, but
where two co-debtors have agreed to share liabilities in a
different manner than profits it is the individual who does not
ultimately bear the liability that is protected by the stay under
section 1301.

SENATE REPORT NO. 95-989
Subsection (a) automatically stays the holder of a claim based on
a consumer debt of the chapter 13 debtor from acting or proceeding
in any way, except as authorized pursuant to subsections (b) and
(c), against an individual or the property of an individual liable
with the chapter 13 debtor, unless such codebtor became liable in
the ordinary course of his business, or unless the case is closed,
dismissed, or converted to another chapter.
Under the terms of the agreement with the codebtor who is not in
bankruptcy, the creditor has a right to collect all payments to the
extent they are not made by the debtor at the time they are due. To
the extent to which a chapter 13 plan does not propose to pay a
creditor his claims, the creditor may obtain relief from the court
from the automatic stay and collect such claims from the codebtor.
Conversely, a codebtor obtains the benefit of any payments made to
the creditor under the plan. If a debtor defaults on scheduled
payments under the plan, then the codebtor would be liable for the
remaining deficiency; otherwise, payments not made under the plan
may never be made by the codebtor. The obligation of the codebtor
to make the creditor whole at the time payments are due remains.
The automatic stay under this section pertains only to the
collection of a consumer debt, defined by section 101(7) of this
title to mean a debt incurred by an individual primarily for a
personal, family, or household purpose. Therefore, not all debts
owed by a chapter 13 debtor will be subject to the stay of the
codebtor, particularly those business debts incurred by an
individual with regular income, as defined by section 101(24) of
this title, engaged in business, that is permitted by virtue of
section 109(b) and section 1304 to obtain chapter 13 relief.
Subsection (b) excepts the giving of notice of dishonor of a
negotiable instrument from the reach of the codebtor stay.
Under subsection (c), if the codebtor has property out of which
the creditor’s claim can be satisfied, the court can grant relief
from the stay absent the transfer of a security interest in that
property by the codebtor to the creditor. Correspondingly, if there
is reasonable cause to believe that property is about to be
disposed of by the codebtor which could be used to satisfy his
obligation to the creditor, the court should lift the stay to allow
the creditor to perfect his rights against such property. Likewise,
if property is subject to rapid depreciation or decrease in value
the stay should be lifted to allow the creditor to protect his
rights to reach such property. Otherwise, the creditor’s interest
would be irreparably harmed by such stay. Property which could be
used to satisfy the claim could be disposed of or encumbered and
placed beyond the reach of the creditor. The creditor should be
allowed to protect his rights to reach property which could satisfy
his claim and prevent its erosion in value, disposal, or
encumbrance.

HOUSE REPORT NO. 95-595
This section is new. It is designed to protect a debtor operating
under a chapter 13 individual repayment plan case by insulating him
from indirect pressures from his creditors exerted through friends
or relatives that may have cosigned an obligation of the debtor.
The protection is limited, however, to ensure that the creditor
involved does not lose the benefit of the bargain he made for a
cosigner. He is entitled to full compensation, including any
interest, fees, and costs provided for by the agreement under which
the debtor obtained his loan. The creditor is simply required to
share with other creditors to the extent that the debtor will repay
him under the chapter 13 plan. The creditor is delayed, but his
substantive rights are not affected.
Subsection (a) is the operative subsection. It stays action by a
creditor after an order for relief under chapter 13. The creditor
may not act, or commence or continue any civil action, to collect
all or any part of a consumer debt of the debtor from any
individual that is liable on such debt with the debtor, or that has
secured the debt, unless the individual became liable or secured
the debt in the ordinary course of his business, or the case is
closed, dismissed, or converted to chapter 7 or 11.
Subsection (b) permits the creditor, notwithstanding the stay, to
present a negotiable instrument and to give notice of dishonor of
the instrument, in order to preserve his substantive rights against
the codebtor as required by applicable nonbankruptcy law.
Subsection (c) requires the court to grant relief from the stay
in certain circumstances. The court must grant relief to the extent
that the debtor does not propose to pay, under the plan, the amount
owed to the creditor. The court must also grant relief to the
extent that the debtor was really the codebtor in the transaction,
that is, to the extent that the nondebtor party actually received
the consideration for the claim held by the creditor. Finally, the
court must grant relief to the extent that the creditor’s interest
would be irreparably harmed by the stay, for example, where the
codebtor filed bankruptcy himself, or threatened to leave the
locale, or lost his job.

AMENDMENTS
1984 – Subsec. (c)(3). Pub. L. 98-353, Sec. 524, inserted
“continuation of” after “by”.
Subsec. (d). Pub. L. 98-353, Sec. 313, added subsec. (d).

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.

-End-

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11 USC Sec. 1302 01/07/2011

-EXPCITE-
TITLE 11 – BANKRUPTCY
CHAPTER 13 – ADJUSTMENT OF DEBTS OF AN INDIVIDUAL WITH REGULAR
INCOME
SUBCHAPTER I – OFFICERS, ADMINISTRATION, AND THE ESTATE

-HEAD-
Sec. 1302. Trustee

-STATUTE-
(a) 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(a)(2),
704(a)(3), 704(a)(4), 704(a)(5), 704(a)(6), 704(a)(7), and
704(a)(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;
(5) ensure that the debtor commences making timely payments
under section 1326 of this title; and
(6) if with respect to the debtor there is a claim for a
domestic support obligation, provide the applicable notice
specified in subsection (d).

(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.
(d)(1) In a case described in subsection (b)(6) to which
subsection (b)(6) applies, the trustee shall –
(A)(i) provide written notice to the holder of the claim
described in subsection (b)(6) of such claim and of the right of
such holder to use the services of the State child support
enforcement agency established under sections 464 and 466 of the
Social Security Act for the State in which such holder resides,
for assistance in collecting child support during and after the
case under this title; and
(ii) include in the notice provided under clause (i) the
address and telephone number of such State child support
enforcement agency;
(B)(i) provide written notice to such State child support
enforcement agency of such claim; and
(ii) include in the notice provided under clause (i) the name,
address, and telephone number of such holder; and
(C) at such time as the debtor is granted a discharge under
section 1328, provide written notice to such holder and to such
State child support enforcement agency of –
(i) the granting of the discharge;
(ii) the last recent known address of the debtor;
(iii) the last recent known name and address of the debtor’s
employer; and
(iv) the name of each creditor that holds a claim that –
(I) is not discharged under paragraph (2) or (4) of section
523(a); or
(II) was reaffirmed by the debtor under section 524(c).

(2)(A) The holder of a claim described in subsection (b)(6) or
the State child support enforcement agency of the State in which
such holder resides may request from a creditor described in
paragraph (1)(C)(iv) the last known address of the debtor.
(B) Notwithstanding any other provision of law, a creditor that
makes a disclosure of a last known address of a debtor in
connection with a request made under subparagraph (A) shall not be
liable by reason of making that disclosure.

-SOURCE-
(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; Pub. L. 109-8, title II, Sec. 219(d), Apr. 20, 2005,
119 Stat. 58; Pub. L. 111-327, Sec. 2(a)(39), Dec. 22, 2010, 124
Stat. 3561.)

-MISC1-
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.

-REFTEXT-
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.
Sections 464 and 466 of the Social Security Act, referred to in
subsec. (d)(1)(A)(i), are classified to sections 664 and 666,
respectively, of Title 42, The Public Health and Welfare.

-MISC2-
AMENDMENTS
2010 – Subsec. (b)(1). Pub. L. 111-327 substituted “704(a)(2),
704(a)(3), 704(a)(4), 704(a)(5), 704(a)(6), 704(a)(7), and
704(a)(9)” for “704(2), 704(3), 704(4), 704(5), 704(6), 704(7), and
704(9)”.
2005 – Subsec. (b)(6). Pub. L. 109-8, Sec. 219(d)(1), added par.
(6).
Subsec. (d). Pub. L. 109-8, Sec. 219(d)(2), added subsec. (d).
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 2005 AMENDMENT
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.

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.

-End-

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11 USC Sec. 1303 01/07/2011

-EXPCITE-
TITLE 11 – BANKRUPTCY
CHAPTER 13 – ADJUSTMENT OF DEBTS OF AN INDIVIDUAL WITH REGULAR
INCOME
SUBCHAPTER I – OFFICERS, ADMINISTRATION, AND THE ESTATE

-HEAD-
Sec. 1303. Rights and powers of debtor

-STATUTE-
Subject to any limitations on a trustee under this chapter, the
debtor shall have, exclusive of the trustee, the rights and powers
of a trustee under sections 363(b), 363(d), 363(e), 363(f), and
363(l), of this title.

-SOURCE-
(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2646.)

-MISC1-
HISTORICAL AND REVISION NOTES

LEGISLATIVE STATEMENTS
Section 1303 of the House amendment specifies rights and powers
that the debtor has exclusive of the trustees. The section does not
imply that the debtor does not also possess other powers
concurrently with the trustee. For example, although section 1323
is not specified in section 1303, certainly it is intended that the
debtor has the power to sue and be sued.

SENATE REPORT NO. 95-989
A chapter 13 debtor is vested with the identical rights and
powers, and is subject to the same limitations in regard to their
exercise, as those given a liquidation trustee by virtue of section
363(b), (d), (e), (f), and (h) of title 11, relating to the sale,
use or lease of property.

-End-

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11 USC Sec. 1304 01/07/2011

-EXPCITE-
TITLE 11 – BANKRUPTCY
CHAPTER 13 – ADJUSTMENT OF DEBTS OF AN INDIVIDUAL WITH REGULAR
INCOME
SUBCHAPTER I – OFFICERS, ADMINISTRATION, AND THE ESTATE

-HEAD-
Sec. 1304. Debtor engaged in business

-STATUTE-
(a) A debtor that is self-employed and incurs trade credit in the
production of income from such employment is engaged in business.
(b) Unless the court orders otherwise, a debtor engaged in
business may operate the business of the debtor and, subject to any
limitations on a trustee under sections 363(c) and 364 of this
title and to such limitations or conditions as the court
prescribes, shall have, exclusive of the trustee, the rights and
powers of the trustee under such sections.
(c) A debtor engaged in business shall perform the duties of the
trustee specified in section 704(a)(8) of this title.

-SOURCE-
(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2646; Pub. L. 98-353, title
III, Secs. 311(b)(2), 526, July 10, 1984, 98 Stat. 355, 389; Pub.
L. 111-327, Sec. 2(a)(40), Dec. 22, 2010, 124 Stat. 3562.)

-MISC1-
HISTORICAL AND REVISION NOTES

LEGISLATIVE STATEMENTS
Section 1304(b) of the House amendment adopts the approach taken
in the comparable section of the Senate amendment as preferable to
the position taken in the House bill.

SENATE REPORT NO. 95-989
Increased access to the simpler, speedier, and less expensive
debtor relief provisions of chapter 13 is accomplished by
permitting debtors engaged in business to proceed under chapter 13,
provided their income is sufficiently stable and regular to permit
compliance with a chapter 13 plan [section 101(24)] and that the
debtor (or the debtor and spouse) do not owe liquidated,
noncontingent unsecured debts of $50,000, or liquidated,
noncontingent secured debts of $200,000 (Sec. 109(d)).
Section 1304(a) states that a self-employed individual who incurs
trade credit in the production of income is a debtor engaged in
business.
Subsection (b) empowers a chapter 13 debtor engaged in business
to operate his business, subject to the rights, powers and
limitations that pertain to a trustee under sections 363(c) and 364
of title 11, and subject to such further limitations and conditions
as the court may prescribe.
Subsection (c) requires a chapter 13 debtor engaged in business
to file with the court certain financial statements relating to the
operation of the business.

AMENDMENTS
2010 – Subsec. (c). Pub. L. 111-327 substituted “704(a)(8)” for
“704(8)”.
1984 – Subsec. (b). Pub. L. 98-353, Sec. 526, struck out the
comma after “of the debtor”.
Subsec. (c). Pub. L. 98-353, Sec. 311(b)(2), substituted “section
704(8)” for “section 704(7)”.

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.

-End-

-CITE-
11 USC Sec. 1305 01/07/2011

-EXPCITE-
TITLE 11 – BANKRUPTCY
CHAPTER 13 – ADJUSTMENT OF DEBTS OF AN INDIVIDUAL WITH REGULAR
INCOME
SUBCHAPTER I – OFFICERS, ADMINISTRATION, AND THE ESTATE

-HEAD-
Sec. 1305. Filing and allowance of postpetition claims

-STATUTE-
(a) A proof of claim may be filed by any entity that holds a
claim against the debtor –
(1) for taxes that become payable to a governmental unit while
the case is pending; or
(2) that is a consumer debt, that arises after the date of the
order for relief under this chapter, and that is for property or
services necessary for the debtor’s performance under the plan.

(b) Except as provided in subsection (c) of this section, a claim
filed under subsection (a) of this section shall be allowed or
disallowed under section 502 of this title, but shall be determined
as of the date such claim arises, and shall be allowed under
section 502(a), 502(b), or 502(c) of this title, or disallowed
under section 502(d) or 502(e) of this title, the same as if such
claim had arisen before the date of the filing of the petition.
(c) A claim filed under subsection (a)(2) of this section shall
be disallowed if the holder of such claim knew or should have known
that prior approval by the trustee of the debtor’s incurring the
obligation was practicable and was not obtained.

-SOURCE-
(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2647.)

-MISC1-
HISTORICAL AND REVISION NOTES

LEGISLATIVE STATEMENTS
Section 1305(a)(2) of the House amendment modifies similar
provisions contained in the House and Senate bills by restricting
application of the paragraph to a consumer debt. Debts of the
debtor that are not consumer debts should not be subjected to
section 1305(c) or section 1328(d) of the House amendment.
Section 1305(b) of the House amendment represents a technical
modification of similar provisions contained in the House bill and
Senate amendment.
The House amendment deletes section 1305(d) of the Senate
amendment as unnecessary. Section 502(b)(1) is sufficient to
disallow any claim to the extent the claim represents the usurious
interest or any other charge forbidden by applicable law. It is
anticipated that the Rules of Bankruptcy Procedure may require a
creditor filing a proof of claim in a case under chapter 13 to
include an affirmative statement as contemplated by section 1305(d)
of the Senate amendment.

SENATE REPORT NO. 95-989
Section 1305, exclusively applicable in chapter 13 cases,
supplements the provisions of sections 501-511 of title 11, dealing
with the filing and allowance of claims. Sections 501-511 apply in
chapter 13 cases by virtue of section 103(a) of this title. Section
1305(a) provides for the filing of a proof of claim for taxes and
other obligations incurred after the filing of the chapter 13 case.
Subsection (b) prescribes that section 502 of title 11 governs the
allowance of section 1305(a) claims, except that its standards
shall be applied as of the date of allowance of the claim, rather
than the date of filing of the petition. Subsection (c) requires
the disallowance of a postpetition claim for property or services
necessary for the debtor’s performance under the plan, if the
holder of the claim knew or should have known that prior approval
by the trustee of the debtor’s incurring of the obligation was
practicable and was not obtained.

HOUSE REPORT NO. 95-595
Subsection (a) permits the filing of a proof of a claim against
the debtor that is for taxes that become payable to a governmental
unit while the case is pending, or that arises after the date of
the filing of the petition for property or services that are
necessary for the debtor’s performance under the plan, such as auto
repairs in order that the debtor will be able to get to work, or
medical bills. The effect of the latter provision, in paragraph
(2), is to treat postpetition credit extended to a chapter 13
debtor the same as a prepetition claim for purposes of allowance,
distribution, and so on.

-End-

-CITE-
11 USC Sec. 1306 01/07/2011

-EXPCITE-
TITLE 11 – BANKRUPTCY
CHAPTER 13 – ADJUSTMENT OF DEBTS OF AN INDIVIDUAL WITH REGULAR
INCOME
SUBCHAPTER I – OFFICERS, ADMINISTRATION, AND THE ESTATE

-HEAD-
Sec. 1306. Property of the estate

-STATUTE-
(a) Property of the estate includes, in addition to the property
specified in section 541 of this title –
(1) all property of the kind specified in such section that the
debtor acquires after the commencement of the case but before the
case is closed, dismissed, or converted to a case under chapter
7, 11, or 12 of this title, whichever occurs first; and
(2) earnings from services performed by the debtor after the
commencement of the case but before the case is closed,
dismissed, or converted to a case under chapter 7, 11, or 12 of
this title, whichever occurs first.

(b) Except as provided in a confirmed plan or order confirming a
plan, the debtor shall remain in possession of all property of the
estate.

-SOURCE-
(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2647; Pub. L. 99-554, title
II, Sec. 257(u), Oct. 27, 1986, 100 Stat. 3116.)

-MISC1-
HISTORICAL AND REVISION NOTES

LEGISLATIVE STATEMENTS
Section 1306(a)(2) adopts a provision contained in the Senate
amendment in preference to a similar provision contained in the
House bill.

SENATE REPORT NO. 95-989
Section 541 is expressly made applicable to chapter 13 cases by
section 103(a). Section 1306 broadens the definition of property of
the estate for chapter 13 purposes to include all property acquired
and all earnings from services performed by the debtor after the
commencement of the case.
Subsection (b) nullifies the effect of section 521(3), otherwise
applicable, by providing that a chapter 13 debtor need not
surrender possession of property of the estate, unless required by
the plan or order of confirmation.

AMENDMENTS
1986 – Subsec. (a). Pub. L. 99-554 inserted reference to chapter
12 in pars. (1) and (2).

EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by Pub. L. 99-554 effective 30 days after Oct. 27,
1986, but not applicable to cases commenced under this title before
that date, see section 302(a), (c)(1) of Pub. L. 99-554, set out as
a note under section 581 of Title 28, Judiciary and Judicial
Procedure.

-End-

-CITE-
11 USC Sec. 1307 01/07/2011

-EXPCITE-
TITLE 11 – BANKRUPTCY
CHAPTER 13 – ADJUSTMENT OF DEBTS OF AN INDIVIDUAL WITH REGULAR
INCOME
SUBCHAPTER I – OFFICERS, ADMINISTRATION, AND THE ESTATE

-HEAD-
Sec. 1307. Conversion or dismissal

-STATUTE-
(a) The debtor may convert a case under this chapter to a case
under chapter 7 of this title at any time. Any waiver of the right
to convert under this subsection is unenforceable.
(b) On request of the debtor at any time, if the case has not
been converted under section 706, 1112, or 1208 of this title, the
court shall dismiss a case under this chapter. Any waiver of the
right to dismiss under this subsection is unenforceable.
(c) Except as provided in subsection (f) of this section, on
request of a party in interest or the United States trustee and
after notice and a hearing, the court may convert a case under this
chapter to a case under chapter 7 of this title, or may dismiss a
case under this chapter, whichever is in the best interests of
creditors and the estate, for cause, including –
(1) unreasonable delay by the debtor that is prejudicial to
creditors;
(2) nonpayment of any fees and charges required under chapter
123 of title 28;
(3) failure to file a plan timely under section 1321 of this
title;
(4) failure to commence making timely payments under section
1326 of this title;
(5) denial of confirmation of a plan under section 1325 of this
title and denial of a request made for additional time for filing
another plan or a modification of a plan;
(6) material default by the debtor with respect to a term of a
confirmed plan;
(7) revocation of the order of confirmation under section 1330
of this title, and denial of confirmation of a modified plan
under section 1329 of this title;
(8) termination of a confirmed plan by reason of the occurrence
of a condition specified in the plan other than completion of
payments under the plan;
(9) only on request of the United States trustee, failure of
the debtor to file, within fifteen days, or such additional time
as the court may allow, after the filing of the petition
commencing such case, the information required by paragraph (1)
of section 521(a);
(10) only on request of the United States trustee, failure to
timely file the information required by paragraph (2) of section
521(a); or
(11) failure of the debtor to pay any domestic support
obligation that first becomes payable after the date of the
filing of the petition.

(d) Except as provided in subsection (f) of this section, at any
time before the confirmation of a plan under section 1325 of this
title, on request of a party in interest or the United States
trustee and after notice and a hearing, the court may convert a
case under this chapter to a case under chapter 11 or 12 of this
title.
(e) Upon the failure of the debtor to file a tax return under
section 1308, on request of a party in interest or the United
States trustee and after notice and a hearing, the court shall
dismiss a case or convert a case under this chapter to a case under
chapter 7 of this title, whichever is in the best interest of the
creditors and the estate.
(f) The court may not convert a case under this chapter to a case
under chapter 7, 11, or 12 of this title if the debtor is a farmer,
unless the debtor requests such conversion.
(g) Notwithstanding any other provision of this section, a case
may not be converted to a case under another chapter of this title
unless the debtor may be a debtor under such chapter.

-SOURCE-
(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2647; Pub. L. 98-353, title
III, Secs. 315, 527, July 10, 1984, 98 Stat. 356, 389; Pub. L. 99-
554, title II, Secs. 229, 257(v), Oct. 27, 1986, 100 Stat. 3103,
3116; Pub. L. 109-8, title II, Sec. 213(7), title VII, Sec. 716(c),
Apr. 20, 2005, 119 Stat. 53, 130; Pub. L. 111-327, Sec. 2(a)(41),
Dec. 22, 2010, 124 Stat. 3562.)

-MISC1-
HISTORICAL AND REVISION NOTES

LEGISLATIVE STATEMENTS
Section 1307(a) is derived from the Senate amendment in
preference to a comparable provision contained in the House bill.

SENATE REPORT NO. 95-989
Subsections (a) and (b) confirm, without qualification, the
rights of a chapter 13 debtor to convert the case to a liquidating
bankruptcy case under chapter 7 of title 11, at any time, or to
have the chapter 13 case dismissed. Waiver of any such right is
unenforceable. Subsection (c) specifies various conditions for the
exercise of the power of the court to convert a chapter 13 case to
one under chapter 7 or to dismiss the case. Subsection (d) deals
with the conversion of a chapter 13 case to one under chapter 11.
Subsection (e) prohibits conversion of the chapter 13 case filed by
a farmer to chapter 7 or 11 except at the request of the debtor. No
case is to be converted from chapter 13 to any other chapter,
unless the debtor is an eligible debtor under the new chapter.

HOUSE REPORT NO. 95-595
Subsection (f) reinforces section 109 by prohibiting conversion
to a chapter under which the debtor is not eligible to proceed.

AMENDMENTS
2010 – Subsec. (c). Pub. L. 111-327, Sec. 2(a)(41)(A)(i),
substituted “subsection (f)” for “subsection (e)” in introductory
provisions.
Subsec. (c)(9), (10). Pub. L. 111-327, Sec. 2(a)(41)(A)(ii),
(iii), substituted “521(a)” for “521”.
Subsec. (d). Pub. L. 111-327, Sec. 2(a)(41)(B), substituted
“subsection (f)” for “subsection (e)”.
2005 – Subsec. (c)(11). Pub. L. 109-8, Sec. 213(7), added par.
(11).
Subsecs. (e) to (g). Pub. L. 109-8, Sec. 716(c), added subsec.
(e) and redesignated former subsecs. (e) and (f) as (f) and (g),
respectively.
1986 – Subsec. (b). Pub. L. 99-554, Sec. 257(v)(1), inserted
reference to section 1208 of this title.
Subsec. (c). Pub. L. 99-554, Sec. 229(1)(A), inserted “or the
United States trustee” after “party in interest” in provisions
preceding par. (1).
Subsec. (c)(9), (10). Pub. L. 99-554, Sec. 229(1)(B)-(D), added
pars. (9) and (10).
Subsec. (d). Pub. L. 99-554, Sec. 257(v)(2), inserted reference
to chapter 12.
Pub. L. 99-554, Sec. 229(2), inserted “or the United States
trustee” after “party in interest”.
Subsec. (e). Pub. L. 99-554, Sec. 257(v)(3), inserted reference
to chapter 12.
1984 – Subsec. (b). Pub. L. 98-353, Sec. 527(a), inserted a comma
after “time”.
Subsec. (c)(4). Pub. L. 98-353, Sec. 315(2), added par. (4).
Former par. (4) redesignated (5).
Subsec. (c)(5). Pub. L. 98-353, Secs. 315(1), 527(b)(1),
redesignated former par. (4) as (5) and inserted “a request made
for” before “additional”. Former par. (5) redesignated (6).
Subsec. (c)(6). Pub. L. 98-353, Sec. 315(1), redesignated former
par. (5) as (6). Former par. (6) redesignated (7).
Subsec. (c)(7). Pub. L. 98-353, Secs. 315(1), 527(b)(2),
redesignated former par. (6) as (7) and substituted “or” for “and”.
Former par. (7) redesignated (8).
Subsec. (c)(8). Pub. L. 98-353, Secs. 315(1), 527(b)(3),
redesignated former par. (7) as (8) and inserted “other than
completion of payments under the plan” after “in the plan”.

EFFECTIVE DATE OF 2005 AMENDMENT
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.

EFFECTIVE DATE OF 1986 AMENDMENT
Effective date and applicability of amendment by section 229 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 257 of Pub. L. 99-554 effective 30 days
after Oct. 27, 1986, but not applicable to cases commenced under
this title before that date, see section 302(a), (c)(1) 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.

-End-

-CITE-
11 USC Sec. 1308 01/07/2011

-EXPCITE-
TITLE 11 – BANKRUPTCY
CHAPTER 13 – ADJUSTMENT OF DEBTS OF AN INDIVIDUAL WITH REGULAR
INCOME
SUBCHAPTER I – OFFICERS, ADMINISTRATION, AND THE ESTATE

-HEAD-
Sec. 1308. Filing of prepetition tax returns

-STATUTE-
(a) Not later than the day before the date on which the meeting
of the creditors is first scheduled to be held under section
341(a), if the debtor was required to file a tax return under
applicable nonbankruptcy law, the debtor shall file with
appropriate tax authorities all tax returns for all taxable periods
ending during the 4-year period ending on the date of the filing of
the petition.
(b)(1) Subject to paragraph (2), if the tax returns required by
subsection (a) have not been filed by the date on which the meeting
of creditors is first scheduled to be held under section 341(a),
the trustee may hold open that meeting for a reasonable period of
time to allow the debtor an additional period of time to file any
unfiled returns, but such additional period of time shall not
extend beyond –
(A) for any return that is past due as of the date of the
filing of the petition, the date that is 120 days after the date
of that meeting; or
(B) for any return that is not past due as of the date of the
filing of the petition, the later of –
(i) the date that is 120 days after the date of that meeting;
or
(ii) the date on which the return is due under the last
automatic extension of time for filing that return to which the
debtor is entitled, and for which request is timely made, in
accordance with applicable nonbankruptcy law.

(2) After notice and a hearing, and order entered before the
tolling of any applicable filing period determined under paragraph
(1), if the debtor demonstrates by a preponderance of the evidence
that the failure to file a return as required under paragraph (1)
is attributable to circumstances beyond the control of the debtor,
the court may extend the filing period established by the trustee
under paragraph (1) for –
(A) a period of not more than 30 days for returns described in
paragraph (1)(A); and
(B) a period not to extend after the applicable extended due
date for a return described in paragraph (1)(B).

(c) For purposes of this section, the term “return” includes a
return prepared pursuant to subsection (a) or (b) of section 6020
of the Internal Revenue Code of 1986, or a similar State or local
law, or a written stipulation to a judgment or a final order
entered by a nonbankruptcy tribunal.

-SOURCE-
(Added Pub. L. 109-8, title VII, Sec. 716(b)(1), Apr. 20, 2005, 119
Stat. 129; amended Pub. L. 111-327, Sec. 2(a)(42), Dec. 22, 2010,
124 Stat. 3562.)

-REFTEXT-
REFERENCES IN TEXT
Section 6020 of the Internal Revenue Code of 1986, referred to in
subsec. (c), is classified to section 6020 of Title 26, Internal
Revenue Code.

-MISC1-
AMENDMENTS
2010 – Subsec. (b)(2). Pub. L. 111-327, Sec. 2(a)(42)(C),
substituted “paragraph (1)” for “this subsection” wherever
appearing in introductory provisions.
Subsec. (b)(2)(A). Pub. L. 111-327, Sec. 2(a)(42)(A), substituted
“paragraph (1)(A)” for “paragraph (1)”.
Subsec. (b)(2)(B). Pub. L. 111-327, Sec. 2(a)(42)(B), substituted
“paragraph (1)(B)” for “paragraph (2)”.

EFFECTIVE DATE
Section 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 an Effective Date of 2005 Amendment
note under section 101 of this title.

-End-

-CITE-
11 USC SUBCHAPTER II – THE PLAN 01/07/2011

-EXPCITE-
TITLE 11 – BANKRUPTCY
CHAPTER 13 – ADJUSTMENT OF DEBTS OF AN INDIVIDUAL WITH REGULAR
INCOME
SUBCHAPTER II – THE PLAN

-HEAD-
SUBCHAPTER II – THE PLAN

-End-

-CITE-
11 USC Sec. 1321 01/07/2011

-EXPCITE-
TITLE 11 – BANKRUPTCY
CHAPTER 13 – ADJUSTMENT OF DEBTS OF AN INDIVIDUAL WITH REGULAR
INCOME
SUBCHAPTER II – THE PLAN

-HEAD-
Sec. 1321. Filing of plan

-STATUTE-
The debtor shall file a plan.

-SOURCE-
(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2648.)

-MISC1-
HISTORICAL AND REVISION NOTES

SENATE REPORT NO. 95-989
Chapter 13 contemplates the filing of a plan only by the debtor.

-End-

-CITE-
11 USC Sec. 1322 01/07/2011

-EXPCITE-
TITLE 11 – BANKRUPTCY
CHAPTER 13 – ADJUSTMENT OF DEBTS OF AN INDIVIDUAL WITH REGULAR
INCOME
SUBCHAPTER II – THE PLAN

-HEAD-
Sec. 1322. Contents of plan

-STATUTE-
(a) The plan –
(1) shall provide for the submission of all or such portion of
future earnings or other future income of the debtor to the
supervision and control of the trustee as is necessary for the
execution of the plan;
(2) shall provide for the full payment, in deferred cash
payments, of all claims entitled to priority under section 507 of
this title, unless the holder of a particular claim agrees to a
different treatment of such claim;
(3) if the plan classifies claims, shall provide the same
treatment for each claim within a particular class; and
(4) notwithstanding any other provision of this section, may
provide for less than full payment of all amounts owed for a
claim entitled to priority under section 507(a)(1)(B) only if the
plan provides that all of the debtor’s projected disposable
income for a 5-year period beginning on the date that the first
payment is due under the plan will be applied to make payments
under the plan.

(b) Subject to subsections (a) and (c) of this section, the plan
may –
(1) designate a class or classes of unsecured claims, as
provided in section 1122 of this title, but may not discriminate
unfairly against any class so designated; however, such plan may
treat claims for a consumer debt of the debtor if an individual
is liable on such consumer debt with the debtor differently than
other unsecured claims;
(2) modify the rights of holders of secured claims, other than
a claim secured only by a security interest in real property that
is the debtor’s principal residence, or of holders of unsecured
claims, or leave unaffected the rights of holders of any class of
claims;
(3) provide for the curing or waiving of any default;
(4) provide for payments on any unsecured claim to be made
concurrently with payments on any secured claim or any other
unsecured claim;
(5) notwithstanding paragraph (2) of this subsection, provide
for the curing of any default within a reasonable time and
maintenance of payments while the case is pending on any
unsecured claim or secured claim on which the last payment is due
after the date on which the final payment under the plan is due;
(6) provide for the payment of all or any part of any claim
allowed under section 1305 of this title;
(7) subject to section 365 of this title, provide for the
assumption, rejection, or assignment of any executory contract or
unexpired lease of the debtor not previously rejected under such
section;
(8) provide for the payment of all or part of a claim against
the debtor from property of the estate or property of the debtor;
(9) provide for the vesting of property of the estate, on
confirmation of the plan or at a later time, in the debtor or in
any other entity;
(10) provide for the payment of interest accruing after the
date of the filing of the petition on unsecured claims that are
nondischargeable under section 1328(a), except that such interest
may be paid only to the extent that the debtor has disposable
income available to pay such interest after making provision for
full payment of all allowed claims; and
(11) include any other appropriate provision not inconsistent
with this title.

(c) Notwithstanding subsection (b)(2) and applicable
nonbankruptcy law –
(1) a default with respect to, or that gave rise to, a lien on
the debtor’s principal residence may be cured under paragraph (3)
or (5) of subsection (b) until such residence is sold at a
foreclosure sale that is conducted in accordance with applicable
nonbankruptcy law; and
(2) in a case in which the last payment on the original payment
schedule for a claim secured only by a security interest in real
property that is the debtor’s principal residence is due before
the date on which the final payment under the plan is due, the
plan may provide for the payment of the claim as modified
pursuant to section 1325(a)(5) of this title.

(d)(1) If the current monthly income of the debtor and the
debtor’s spouse combined, when multiplied by 12, is not less than –

(A) in the case of a debtor in a household of 1 person, the
median family income of the applicable State for 1 earner;
(B) in the case of a debtor in a household of 2, 3, or 4
individuals, the highest median family income of the applicable
State for a family of the same number or fewer individuals; or
(C) in the case of a debtor in a household exceeding 4
individuals, the highest median family income of the applicable
State for a family of 4 or fewer individuals, plus $525 per month
for each individual in excess of 4,

the plan may not provide for payments over a period that is longer
than 5 years.
(2) If the current monthly income of the debtor and the debtor’s
spouse combined, when multiplied by 12, is less than –
(A) in the case of a debtor in a household of 1 person, the
median family income of the applicable State for 1 earner;
(B) in the case of a debtor in a household of 2, 3, or 4
individuals, the highest median family income of the applicable
State for a family of the same number or fewer individuals; or
(C) in the case of a debtor in a household exceeding 4
individuals, the highest median family income of the applicable
State for a family of 4 or fewer individuals, plus $525 per month
for each individual in excess of 4,

the plan may not provide for payments over a period that is longer
than 3 years, unless the court, for cause, approves a longer
period, but the court may not approve a period that is longer than
5 years.
(e) Notwithstanding subsection (b)(2) of this section and
sections 506(b) and 1325(a)(5) of this title, if it is proposed in
a plan to cure a default, the amount necessary to cure the default,
shall be determined in accordance with the underlying agreement and
applicable nonbankruptcy law.
(f) A plan may not materially alter the terms of a loan described
in section 362(b)(19) and any amounts required to repay such loan
shall not constitute “disposable income” under section 1325.

-SOURCE-
(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2648; Pub. L. 98-353, title
III, Secs. 316, 528, July 10, 1984, 98 Stat. 356, 389; Pub. L. 103-
394, title III, Secs. 301, 305(c), Oct. 22, 1994, 108 Stat. 4131,
4134; Pub. L. 109-8, title II, Secs. 213(8), (9), 224(d), title
III, Sec. 318(1), Apr. 20, 2005, 119 Stat. 53, 65, 93; Pub. L. 111-
327, Sec. 2(a)(43), Dec. 22, 2010, 124 Stat. 3562.)

-STATAMEND-
ADJUSTMENT OF DOLLAR AMOUNTS
For adjustment of certain dollar amounts specified in this
section, that is not reflected in text, see Adjustment of Dollar
Amounts note below.

-MISC1-
HISTORICAL AND REVISION NOTES

LEGISLATIVE STATEMENTS
Section 1322(b)(2) of the House amendment represents a compromise
agreement between similar provisions in the House bill and Senate
amendment. Under the House amendment, the plan may modify the
rights of holders of secured claims other than a claim secured by a
security interest in real property that is the debtor’s principal
residence. It is intended that a claim secured by the debtor’s
principal residence may be treated with under section 1322(b)(5) of
the House amendment.
Section 1322(c) adopts a 5-year period derived from the House
bill in preference to a 4-year period contained in the Senate
amendment. A conforming change is made in section 1329(c) adopting
the provision in the House bill in preference to a comparable
provision in the Senate amendment.
Tax payments in wage earner plans: The House bill provided that a
wage earner plan had to provide that all priority claims would be
paid in full. The Senate amendment contained a special rule in
section 1325(c) requiring that Federal tax claims must be paid in
cash, but that such tax claims can be paid in deferred cash
installments under the general rules applicable to the payment of
debts in a wage earner plan, unless the Internal Revenue Service
negotiates with the debtor for some different medium or time for
payment of the tax liability.
The House bill adopts the substance of the Senate amendment rule
under section 1322(a)(2) of the House amendment. A wage earner plan
must provide for full payment in deferred cash payments, of all
priority claims, unless the holder of a particular claim agrees
with a different treatment of such claim.

SENATE REPORT NO. 95-989
Chapter 13 is designed to serve as a flexible vehicle for the
repayment of part or all of the allowed claims of the debtor.
Section 1322 emphasizes that purpose by fixing a minimum of
mandatory plan provisions.
Subsection (a) requires that the plan submit whatever portion of
the future income of the debtor is necessary to implement the plan
to the control of the trustee, mandates payment in full of all
section 507 priority claims, and requires identical treatment for
all claims of a particular class.
Subsection (b) permits a chapter 13 plan to (1) divide unsecured
claims not entitled to priority under section 507 into classes in
the manner authorized for chapter 11 claims; (2) modify the rights
of holders of secured and unsecured claims, except claims wholly
secured by real estate mortgages; (3) cure or waive any default;
(4) propose payments on unsecured claims concurrently with payments
on any secured claim or any other class of unsecured claims; (5)
provide for curing any default on any secured or unsecured claim on
which the final payment is due after the proposed final payment
under the plan; (6) provide for payment of any allowed postpetition
claim; (7) assume or reject any previously unrejected executory
contract or unexpired lease of the debtor; (8) propose the payment
of all or any part of any claim from property of the estate or of
the debtor; (9) provide for the vesting of property of the estate;
and (10) include any other provision not inconsistent with other
provisions of title 11.
Subsection (c) limits the payment period under the plan to 3
years, except that a 4-year payment period may be permitted by the
court.

AMENDMENTS
2010 – Subsec. (a). Pub. L. 111-327, Sec. 2(a)(43)(A), struck out
“shall” after “plan” in introductory provisions.
Subsec. (a)(1) to (3). Pub. L. 111-327, Sec. 2(a)(43)(B)-(D),
inserted “shall” before “provide”.
Subsec. (a)(4). Pub. L. 111-327, Sec. 2(a)(43)(E), struck out “a
plan” before “may provide”.
2005 – Subsec. (a)(4). Pub. L. 109-8, Sec. 213(8), added par.
(4).
Subsec. (b)(10), (11). Pub. L. 109-8, Sec. 213(9), added par.
(10) and redesignated former par. (10) as (11).
Subsec. (d). Pub. L. 109-8, Sec. 318(1), amended subsec. (d)
generally. Prior to amendment, subsec. (d) read as follows: “The
plan may not provide for payments over a period that is longer than
three years, unless the court, for cause, approves a longer period,
but the court may not approve a period that is longer than five
years.”
Subsec. (f). Pub. L. 109-8, Sec. 224(d), added subsec. (f).
1994 – Subsecs. (c), (d). Pub. L. 103-394, Sec. 301, added
subsec. (c) and redesignated former subsec. (c) as (d).
Subsec. (e). Pub. L. 103-394, Sec. 305(c), added subsec. (e).
1984 – Subsec. (a)(2). Pub. L. 98-353, Sec. 528(a), inserted a
comma after “payments”.
Subsec. (b)(1). Pub. L. 98-353, Sec. 316, inserted “; however,
such plan may treat claims for a consumer debt of the debtor if an
individual is liable on such consumer debt with the debtor
differently than other unsecured claims”.
Subsec. (b)(2). Pub. L. 98-353, Sec. 528(b)(1), inserted “, or
leave unaffected the rights of the holders of any class of claims”.
Subsec. (b)(4). Pub. L. 98-353, Sec. 528(b)(2), inserted “other”
after “claim or any”.
Subsec. (b)(7). Pub. L. 98-353, Sec. 528(b)(3), inserted “subject
to section 365 of this title,” before “provide”, substituted “,
rejection, or assignment” for “or rejection”, and substituted
“under such section” for “under section 365 of this title”.
Subsec. (b)(8). Pub. L. 98-353, Sec. 528(b)(4), struck out “any”
before “part of a claim”.

EFFECTIVE DATE OF 2005 AMENDMENT
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.

EFFECTIVE DATE OF 1994 AMENDMENT
Amendment by section 301 of Pub. L. 103-394 effective Oct. 22,
1994, and not applicable with respect to cases commenced under this
title before Oct. 22, 1994, and amendment by section 305(c) of Pub.
L. 103-394 effective Oct. 22, 1994, and applicable only to
agreements entered into after 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 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.

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 Feb. 19, 2010, 75 F.R. 8747, effective Apr. 1,
2010, in subsec. (d)(1)(C), (2)(C), dollar amount “575” was
adjusted to “625”. See notice of the Judicial Conference of the
United States set out as a note under section 104 of this title.
By notice dated Feb. 7, 2007, 72 F.R. 7082, effective Apr. 1,
2007, in subsec. (d), dollar amount “525” was adjusted to “575”
each time it appeared.

-End-

-CITE-
11 USC Sec. 1323 01/07/2011

-EXPCITE-
TITLE 11 – BANKRUPTCY
CHAPTER 13 – ADJUSTMENT OF DEBTS OF AN INDIVIDUAL WITH REGULAR
INCOME
SUBCHAPTER II – THE PLAN

-HEAD-
Sec. 1323. Modification of plan before confirmation

-STATUTE-
(a) The debtor may modify the plan at any time before
confirmation, but may not modify the plan so that the plan as
modified fails to meet the requirements of section 1322 of this
title.
(b) After the debtor files a modification under this section, the
plan as modified becomes the plan.
(c) Any holder of a secured claim that has accepted or rejected
the plan is deemed to have accepted or rejected, as the case may
be, the plan as modified, unless the modification provides for a
change in the rights of such holder from what such rights were
under the plan before modification, and such holder changes such
holder’s previous acceptance or rejection.

-SOURCE-
(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2649.)

-MISC1-
HISTORICAL AND REVISION NOTES

SENATE REPORT NO. 95-989
The debtor is permitted to modify the plan before confirmation
without court approval so long as the modified plan, which becomes
the plan on filing, complies with the requirements of section 1322.
The original acceptance or rejection of a plan by the holder of a
secured claim remains binding unless the modified plan changes the
rights of the holder and the holder withdraws or alters its earlier
acceptance or rejection.

-End-

-CITE-
11 USC Sec. 1324 01/07/2011

-EXPCITE-
TITLE 11 – BANKRUPTCY
CHAPTER 13 – ADJUSTMENT OF DEBTS OF AN INDIVIDUAL WITH REGULAR
INCOME
SUBCHAPTER II – THE PLAN

-HEAD-
Sec. 1324. Confirmation hearing

-STATUTE-
(a) Except as provided in subsection (b) and after notice, the
court shall hold a hearing on confirmation of the plan. A party in
interest may object to confirmation of the plan.
(b) The hearing on confirmation of the plan may be held not
earlier than 20 days and not later than 45 days after the date of
the meeting of creditors under section 341(a), unless the court
determines that it would be in the best interests of the creditors
and the estate to hold such hearing at an earlier date and there is
no objection to such earlier date.

-SOURCE-
(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2649; Pub. L. 98-353, title
III, Sec. 529, July 10, 1984, 98 Stat. 389; Pub. L. 99-554, title
II, Sec. 283(x), Oct. 27, 1986, 100 Stat. 3118; Pub. L. 109-8,
title III, Sec. 317, Apr. 20, 2005, 119 Stat. 92.)

-MISC1-
HISTORICAL AND REVISION NOTES

SENATE REPORT NO. 95-989
Any party in interest may object to the confirmation of a plan,
as distinguished from merely rejecting a plan. An objection to
confirmation is predicated on failure of the plan or the procedures
employed prior to confirmation to conform with the requirements of
chapter 13. The bankruptcy judge is required to provide notice and
an opportunity for hearing any such objection to confirmation.

AMENDMENTS
2005 – Pub. L. 109-8 designated existing provisions as subsec.
(a), substituted “Except as provided in subsection (b) and after”
for “After”, and added subsec. (b).
1986 – Pub. L. 99-554 struck out “the” after “object to”.
1984 – Pub. L. 98-353 struck out “the” before “confirmation of
the plan”.

EFFECTIVE DATE OF 2005 AMENDMENT
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.

EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by Pub. L. 99-554 effective 30 days after Oct. 27,
1986, see section 302(a) of Pub. L. 99-554, set out as a note under
section 581 of Title 28, Judiciary and Judicial Procedure.

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.

-End-

-CITE-
11 USC Sec. 1325 01/07/2011

-EXPCITE-
TITLE 11 – BANKRUPTCY
CHAPTER 13 – ADJUSTMENT OF DEBTS OF AN INDIVIDUAL WITH REGULAR
INCOME
SUBCHAPTER II – THE PLAN

-HEAD-
Sec. 1325. Confirmation of plan

-STATUTE-
(a) Except as provided in subsection (b), the court shall confirm
a plan if –
(1) The plan complies with the provisions of this chapter and
with the other applicable provisions of this title;
(2) any fee, charge, or amount required under chapter 123 of
title 28, or by the plan, to be paid before confirmation, has
been paid;
(3) the plan has been proposed in good faith and not by any
means forbidden by law;
(4) the value, as of the effective date of the plan, of
property to be distributed under the plan on account of each
allowed unsecured claim is not less than the amount that would be
paid on such claim if the estate of the debtor were liquidated
under chapter 7 of this title on such date;
(5) with respect to each allowed secured claim provided for by
the plan –
(A) the holder of such claim has accepted the plan;
(B)(i) the plan provides that –
(I) the holder of such claim retain the lien securing such
claim until the earlier of –
(aa) the payment of the underlying debt determined under
nonbankruptcy law; or
(bb) discharge under section 1328; and

(II) if the case under this chapter is dismissed or
converted without completion of the plan, such lien shall
also be retained by such holder to the extent recognized by
applicable nonbankruptcy law;

(ii) the value, as of the effective date of the plan, of
property to be distributed under the plan on account of such
claim is not less than the allowed amount of such claim; and
(iii) if –
(I) property to be distributed pursuant to this subsection
is in the form of periodic payments, such payments shall be
in equal monthly amounts; and
(II) the holder of the claim is secured by personal
property, the amount of such payments shall not be less than
an amount sufficient to provide to the holder of such claim
adequate protection during the period of the plan; or

(C) the debtor surrenders the property securing such claim to
such holder;

(6) the debtor will be able to make all payments under the plan
and to comply with the plan;
(7) the action of the debtor in filing the petition was in good
faith;
(8) the debtor has paid all amounts that are required to be
paid under a domestic support obligation and that first become
payable after the date of the filing of the petition if the
debtor is required by a judicial or administrative order, or by
statute, to pay such domestic support obligation; and
(9) the debtor has filed all applicable Federal, State, and
local tax returns as required by section 1308.

For purposes of paragraph (5), section 506 shall not apply to a
claim described in that paragraph if the creditor has a purchase
money security interest securing the debt that is the subject of
the claim, the debt was incurred within the 910-day period
preceding the date of the filing of the petition, and the
collateral for that debt consists of a motor vehicle (as defined in
section 30102 of title 49) acquired for the personal use of the
debtor, or if collateral for that debt consists of any other thing
of value, if the debt was incurred during the 1-year period
preceding that filing.
(b)(1) If the trustee or the holder of an allowed unsecured claim
objects to the confirmation of the plan, then the court may not
approve the plan unless, as of the effective date of the plan –
(A) the value of the property to be distributed under the plan
on account of such claim is not less than the amount of such
claim; or
(B) the plan provides that all of the debtor’s projected
disposable income to be received in the applicable commitment
period beginning on the date that the first payment is due under
the plan will be applied to make payments to unsecured creditors
under the plan.

(2) For purposes of this subsection, the term “disposable income”
means current monthly income received by the debtor (other than
child support payments, foster care payments, or disability
payments for a dependent child made in accordance with applicable
nonbankruptcy law to the extent reasonably necessary to be expended
for such child) less amounts reasonably necessary to be expended –
(A)(i) for the maintenance or support of the debtor or a
dependent of the debtor, or for a domestic support obligation,
that first becomes payable after the date the petition is filed;
and
(ii) for charitable contributions (that meet the definition of
“charitable contribution” under section 548(d)(3)) to a qualified
religious or charitable entity or organization (as defined in
section 548(d)(4)) in an amount not to exceed 15 percent of gross
income of the debtor for the year in which the contributions are
made; and
(B) if the debtor is engaged in business, for the payment of
expenditures necessary for the continuation, preservation, and
operation of such business.

(3) Amounts reasonably necessary to be expended under paragraph
(2), other than subparagraph (A)(ii) of paragraph (2), shall be
determined in accordance with subparagraphs (A) and (B) of section
707(b)(2), if the debtor has current monthly income, when
multiplied by 12, greater than –
(A) in the case of a debtor in a household of 1 person, the
median family income of the applicable State for 1 earner;
(B) in the case of a debtor in a household of 2, 3, or 4
individuals, the highest median family income of the applicable
State for a family of the same number or fewer individuals; or
(C) in the case of a debtor in a household exceeding 4
individuals, the highest median family income of the applicable
State for a family of 4 or fewer individuals, plus $525 per month
for each individual in excess of 4.

(4) For purposes of this subsection, the “applicable commitment
period” –
(A) subject to subparagraph (B), shall be –
(i) 3 years; or
(ii) not less than 5 years, if the current monthly income of
the debtor and the debtor’s spouse combined, when multiplied by
12, is not less than –
(I) in the case of a debtor in a household of 1 person, the
median family income of the applicable State for 1 earner;
(II) in the case of a debtor in a household of 2, 3, or 4
individuals, the highest median family income of the
applicable State for a family of the same number or fewer
individuals; or
(III) in the case of a debtor in a household exceeding 4
individuals, the highest median family income of the
applicable State for a family of 4 or fewer individuals, plus
$525 per month for each individual in excess of 4; and

(B) may be less than 3 or 5 years, whichever is applicable
under subparagraph (A), but only if the plan provides for payment
in full of all allowed unsecured claims over a shorter period.

(c) After confirmation of a plan, the court may order any entity
from whom the debtor receives income to pay all or any part of such
income to the trustee.

-SOURCE-
(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2649; Pub. L. 98-353, title
III, Secs. 317, 530, July 10, 1984, 98 Stat. 356, 389; Pub. L. 99-
554, title II, Sec. 283(y), Oct. 27, 1986, 100 Stat. 3118; Pub. L.
105-183, Sec. 4(a), June 19, 1998, 112 Stat. 518; Pub. L. 109-8,
title I, Sec. 102(g), (h), title II, Sec. 213(10), title III, Secs.
306(a), (b), 309(c)(1), 318(2), (3), title VII, Sec. 716(a), Apr.
20, 2005, 119 Stat. 33, 53, 80, 83, 93, 129; Pub. L. 109-439, Sec.
2, Dec. 20, 2006, 120 Stat. 3285; Pub. L. 111-327, Sec. 2(a)(44),
Dec. 22, 2010, 124 Stat. 3562.)

-STATAMEND-
ADJUSTMENT OF DOLLAR AMOUNTS
For adjustment of certain dollar amounts specified in this
section, that is not reflected in text, see Adjustment of Dollar
Amounts note below.

-MISC1-
HISTORICAL AND REVISION NOTES

LEGISLATIVE STATEMENTS
Section 1325(a)(5)(B) of the House amendment modifies the House
bill and Senate amendment to significantly protect secured
creditors in chapter 13. Unless the secured creditor accepts the
plan, the plan must provide that the secured creditor retain the
lien securing the creditor’s allowed secured claim in addition to
receiving value, as of the effective date of the plan of property
to be distributed under the plan on account of the claim not less
than the allowed amount of the claim. To this extent, a secured
creditor in a case under chapter 13 is treated identically with a
recourse creditor under section 1111(b)(1) of the House amendment
except that the secured creditor in a case under chapter 13 may
receive any property of a value as of the effective date of the
plan equal to the allowed amount of the creditor’s secured claim
rather than being restricted to receiving deferred cash payments.
Of course, the secured creditors’ lien only secures the value of
the collateral and to the extent property is distributed of a
present value equal to the allowed amount of the creditor’s secured
claim the creditor’s lien will have been satisfied in full. Thus
the lien created under section 1325(a)(5)(B)(i) is effective only
to secure deferred payments to the extent of the amount of the
allowed secured claim. To the extent the deferred payments exceed
the value of the allowed amount of the secured claim and the debtor
subsequently defaults, the lien will not secure unaccrued interest
represented in such deferred payments.

SENATE REPORT NO. 95-989
The bankruptcy court must confirm a plan if (1) the plan
satisfies the provisions of chapter 13 and other applicable
provisions of title 11; (2) it is proposed in good faith; (3) it is
in the best interests of creditors, and defined by subsection
(a)(4) of Section 1325; (4) it has been accepted by the holder of
each allowed secured claim provided for the plan or where the
holder of any such secured claim is to receive value under the plan
not less than the amount of the allowed secured claim, or where the
debtor surrenders to the holder the collateral securing any such
allowed secured claim; (5) the plan is feasible; and (6) the
requisite fees and charges have been paid.
Subsection (b) authorizes the court to order an entity, as
defined by Section 101(15), to pay any income of the debtor to the
trustee. Any governmental unit is an entity subject to such an
order.

AMENDMENTS
2010 – Subsec. (a). Pub. L. 111-327, Sec. 2(a)(44)(A), inserted
“period” after “910-day” in concluding provisions.
Subsec. (b)(2)(A)(ii). Pub. L. 111-327, Sec. 2(a)(44)(B),
inserted closing parenthesis after “548(d)(3)”.
2006 – Subsec. (b)(3). Pub. L. 109-439 inserted “, other than
subparagraph (A)(ii) of paragraph (2),” after “under paragraph (2)”
in introductory provisions.
2005 – Subsec. (a). Pub. L. 109-8, Sec. 306(b), inserted
concluding provisions at end “For purposes of paragraph (5),
section 506 shall not apply to a claim described in that paragraph
if the creditor has a purchase money security interest securing the
debt that is the subject of the claim, the debt was incurred within
the 910-day preceding the date of the filing of the petition, and
the collateral for that debt consists of a motor vehicle (as
defined in section 30102 of title 49) acquired for the personal use
of the debtor, or if collateral for that debt consists of any other
thing of value, if the debt was incurred during the 1-year period
preceding that filing.”
Subsec. (a)(5)(B)(i). Pub. L. 109-8, Sec. 306(a), amended cl. (i)
generally. Prior to amendment, cl. (i) read as follows: “the plan
provides that the holder of such claim retain the lien securing
such claim; and”.
Subsec. (a)(5)(B)(iii). Pub. L. 109-8, Sec. 309(c)(1), added cl.
(iii).
Subsec. (a)(7). Pub. L. 109-8, Sec. 102(g), added par. (7).
Subsec. (a)(8). Pub. L. 109-8, Sec. 213(10), added par. (8).
Subsec. (a)(9). Pub. L. 109-8, Sec. 716(a), added par. (9).
Subsec. (b)(1)(B). Pub. L. 109-8, Sec. 318(2), substituted
“applicable commitment period” for “three-year period”.
Pub. L. 109-8, Sec. 102(h)(1), inserted “to unsecured creditors”
after “to make payments”.
Subsec. (b)(2), (3). Pub. L. 109-8, Sec. 102(h)(2), added pars.
(2) and (3) and struck out former par. (2) which read as follows:
“For purposes of this subsection, ‘disposable income’ means income
which is received by the debtor and which is not reasonably
necessary to be expended –
“(A) for the maintenance or support of the debtor or a
dependent of the debtor, including charitable contributions (that
meet the definition of ‘charitable contribution’ under section
548(d)(3)) to a qualified religious or charitable entity or
organization (as that term is defined in section 548(d)(4)) in an
amount not to exceed 15 percent of the gross income of the debtor
for the year in which the contributions are made; and
“(B) if the debtor is engaged in business, for the payment of
expenditures necessary for the continuation, preservation, and
operation of such business.”
Subsec. (b)(4). Pub. L. 109-8, Sec. 318(3), added par. (4).
1998 – Subsec. (b)(2)(A). Pub. L. 105-183 inserted before
semicolon “, including charitable contributions (that meet the
definition of ‘charitable contribution’ under section 548(d)(3)) to
a qualified religious or charitable entity or organization (as that
term is defined in section 548(d)(4)) in an amount not to exceed 15
percent of the gross income of the debtor for the year in which the
contributions are made”.
1986 – Subsec. (b)(2)(A). Pub. L. 99-554 substituted “; and” for
“; or”.
1984 – Subsec. (a). Pub. L. 98-353, Sec. 317(1), substituted
“Except as provided in subsection (b), the” for “The”.
Subsec. (a)(1). Pub. L. 98-353, Sec. 530, inserted “the” before
“other”.
Subsecs. (b), (c). Pub. L. 98-353, Sec. 317(2), (3), added
subsec. (b) and redesignated former subsec. (b) as (c).

EFFECTIVE DATE OF 2005 AMENDMENT
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.

EFFECTIVE DATE OF 1998 AMENDMENT
Amendment by Pub. L. 105-183 applicable to any case brought under
an applicable provision of this title that is pending or commenced
on or after June 19, 1998, see section 5 of Pub. L. 105-183, set
out as a note under section 544 of this title.

EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by Pub. L. 99-554 effective 30 days after Oct. 27,
1986, see section 302(a) of Pub. L. 99-554, set out as a note under
section 581 of Title 28, Judiciary and Judicial Procedure.

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.

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 Feb. 19, 2010, 75 F.R. 8747, effective Apr. 1,
2010, in subsec. (b)(3), (4), dollar amount “575” was adjusted to
“625”. See notice of the Judicial Conference of the United States
set out as a note under section 104 of this title.
By notice dated Feb. 7, 2007, 72 F.R. 7082, effective Apr. 1,
2007, in subsec. (b), dollar amount “525” was adjusted to “575”
each time it appeared.

-End-

-CITE-
11 USC Sec. 1326 01/07/2011

-EXPCITE-
TITLE 11 – BANKRUPTCY
CHAPTER 13 – ADJUSTMENT OF DEBTS OF AN INDIVIDUAL WITH REGULAR
INCOME
SUBCHAPTER II – THE PLAN

-HEAD-
Sec. 1326. Payments

-STATUTE-
(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; 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).

-SOURCE-
(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; Pub. L. 109-8, title III, Sec. 309(c)(2), title XII,
Sec. 1224, title XV, Sec. 1502(a)(10), Apr. 20, 2005, 119 Stat. 83,
199, 217.)

-STATAMEND-
ADJUSTMENT OF DOLLAR AMOUNTS
For adjustment of certain dollar amounts specified in this
section, that is not reflected in text, see Adjustment of Dollar
Amounts note below.

-MISC1-
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.

AMENDMENTS
2005 – Subsec. (a). Pub. L. 109-8, Sec. 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, Sec. 1502(a)(10), substituted
“507(a)(2)” for “507(a)(1)”.
Subsec. (b)(3). Pub. L. 109-8, Sec. 1224(1), added par. (3).
Subsec. (d). Pub. L. 109-8, Sec. 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, 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” after “1302(d)”.
Subsec. (c). Pub. L. 98-353, Sec. 318(a)(1), redesignated former
subsec. (b) as (c).

EFFECTIVE DATE OF 2005 AMENDMENT
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.

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.

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 Feb. 19, 2010, 75 F.R. 8747, effective Apr. 1,
2010, in subsec. (b)(3)(B), 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 Feb. 7, 2007, 72 F.R. 7082, effective Apr. 1,
2007, in subsec. (b)(3), dollar amount “25” was adjusted to “25”.

-End-

-CITE-
11 USC Sec. 1327 01/07/2011

-EXPCITE-
TITLE 11 – BANKRUPTCY
CHAPTER 13 – ADJUSTMENT OF DEBTS OF AN INDIVIDUAL WITH REGULAR
INCOME
SUBCHAPTER II – THE PLAN

-HEAD-
Sec. 1327. Effect of confirmation

-STATUTE-
(a) The provisions of a confirmed plan bind the debtor and each
creditor, whether or not the claim of such creditor is provided for
by the plan, and whether or not such creditor has objected to, has
accepted, or has rejected the plan.
(b) Except as otherwise provided in the plan or the order
confirming the plan, the confirmation of a plan vests all of the
property of the estate in the debtor.
(c) Except as otherwise provided in the plan or in the order
confirming the plan, the property vesting in the debtor under
subsection (b) of this section is free and clear of any claim or
interest of any creditor provided for by the plan.

-SOURCE-
(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2650.)

-MISC1-
HISTORICAL AND REVISION NOTES

SENATE REPORT NO. 95-989
Subsection (a) binds the debtor and each creditor to the
provisions of a confirmed plan, whether or not the claim of the
creditor is provided for by the plan and whether or not the
creditor has accepted, rejected, or objected to the plan. Unless
the plan itself or the order confirming the plan otherwise
provides, confirmation is deemed to vest all property of the estate
in the debtor, free and clear of any claim or interest of any
creditor provided for by the plan.

-End-

-CITE-
11 USC Sec. 1328 01/07/2011

-EXPCITE-
TITLE 11 – BANKRUPTCY
CHAPTER 13 – ADJUSTMENT OF DEBTS OF AN INDIVIDUAL WITH REGULAR
INCOME
SUBCHAPTER II – THE PLAN

-HEAD-
Sec. 1328. Discharge

-STATUTE-
(a) Subject to subsection (d), as soon as practicable after
completion by the debtor of all payments under the plan, and in the
case of a debtor who is required by a judicial or administrative
order, or by statute, to pay a domestic support obligation, after
such debtor certifies that all amounts payable under such order or
such statute that are due on or before the date of the
certification (including amounts due before the petition was filed,
but only to the extent provided for by the plan) have been paid,
unless the court approves a written waiver of discharge executed by
the debtor after the order for relief under this chapter, the court
shall grant the debtor a discharge of all debts provided for by the
plan or disallowed under section 502 of this title, except any debt

(1) provided for under section 1322(b)(5);
(2) of the kind specified in section 507(a)(8)(C) or in
paragraph (1)(B), (1)(C), (2), (3), (4), (5), (8), or (9) of
section 523(a);
(3) for restitution, or a criminal fine, included in a sentence
on the debtor’s conviction of a crime; or
(4) for restitution, or damages, awarded in a civil action
against the debtor as a result of willful or malicious injury by
the debtor that caused personal injury to an individual or the
death of an individual.

(b) Subject to subsection (d), at any time after the confirmation
of the plan and after notice and a hearing, the court may grant a
discharge to a debtor that has not completed payments under the
plan only if –
(1) the debtor’s failure to complete such payments is due to
circumstances for which the debtor should not justly be held
accountable;
(2) the value, as of the effective date of the plan, of
property actually distributed under the plan on account of each
allowed unsecured claim is not less than the amount that would
have been paid on such claim if the estate of the debtor had been
liquidated under chapter 7 of this title on such date; and
(3) modification of the plan under section 1329 of this title
is not practicable.

(c) A discharge granted under subsection (b) of this section
discharges the debtor from all unsecured debts provided for by the
plan or disallowed under section 502 of this title, except any debt

(1) provided for under section 1322(b)(5) of this title; or
(2) of a kind specified in section 523(a) of this title.

(d) Notwithstanding any other provision of this section, a
discharge granted under this section does not discharge the debtor
from any debt based on an allowed claim filed under section
1305(a)(2) of this title if prior approval by the trustee of the
debtor’s incurring such debt was practicable and was not obtained.
(e) On request of a party in interest before one year after a
discharge under this section is granted, and after notice and a
hearing, the court may revoke such discharge only if –
(1) such discharge was obtained by the debtor through fraud;
and
(2) the requesting party did not know of such fraud until after
such discharge was granted.

(f) Notwithstanding subsections (a) and (b), the court shall not
grant a discharge of all debts provided for in the plan or
disallowed under section 502, if the debtor has received a
discharge –
(1) in a case filed under chapter 7, 11, or 12 of this title
during the 4-year period preceding the date of the order for
relief under this chapter, or
(2) in a case filed under chapter 13 of this title during the 2-
year period preceding the date of such order.

(g)(1) The court shall not grant a discharge under this section
to a debtor unless after filing a petition the debtor has completed
an instructional course concerning personal financial management
described in section 111.
(2) Paragraph (1) shall not apply with respect to a debtor who is
a person described in section 109(h)(4) or who resides in a
district for which the United States trustee (or the bankruptcy
administrator, if any) determines that the approved instructional
courses are not adequate to service the additional individuals who
would otherwise be required to complete such instructional course
by reason of the requirements of paragraph (1).
(3) The United States trustee (or the bankruptcy administrator,
if any) who makes a determination described in paragraph (2) shall
review such determination not later than 1 year after the date of
such determination, and not less frequently than annually
thereafter.
(h) The court may not grant a discharge under this chapter unless
the court after notice and a hearing held not more than 10 days
before the date of the entry of the order granting the discharge
finds that there is no reasonable cause to believe that –
(1) section 522(q)(1) may be applicable to the debtor; and
(2) there is pending any proceeding in which the debtor may be
found guilty of a felony of the kind described in section
522(q)(1)(A) or liable for a debt of the kind described in
section 522(q)(1)(B).

-SOURCE-
(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2650; Pub. L. 98-353, title
III, Sec. 532, July 10, 1984, 98 Stat. 389; Pub. L. 101-508, title
III, Sec. 3007(b)(1), Nov. 5, 1990, 104 Stat. 1388-28; Pub. L. 101-
581, Secs. 2(b), 3, Nov. 15, 1990, 104 Stat. 2865; Pub. L. 101-
647, title XXXI, Secs. 3102(b), 3103, Nov. 29, 1990, 104 Stat.
4916; Pub. L. 103-394, title III, Sec. 302, title V, Sec.
501(d)(38), Oct. 22, 1994, 108 Stat. 4132, 4147; Pub. L. 109-8,
title I, Sec. 106(c), title II, Sec. 213(11), title III, Secs.
312(2), 314(b), 330(d), title VII, Sec. 707, Apr. 20, 2005, 119
Stat. 38, 53, 87, 88, 102, 126.)

-MISC1-
HISTORICAL AND REVISION NOTES

LEGISLATIVE STATEMENTS
Section 1328(a) adopts a provision contained in the Senate
amendment permitting the court to approve a waiver of discharge by
the debtor. It is anticipated that such a waiver must be in writing
executed after the order for relief in a case under chapter 13.

SENATE REPORT NO. 95-989
The court is to enter a discharge, unless waived, as soon as
practicable after completion of payments under the plan. The debtor
is to be discharged of all debts provided for by the plan or
disallowed under section 502, except a debt provided for under the
plan the last payment on which was not due until after the
completion of the plan, or a debt incurred for willful and
malicious conversion of or injury to the property or person of
another.
Subsection (b) is the successor to Bankruptcy Act Section 661
[section 1061 of former title 11]. This subsection permits the
bankruptcy judge to grant the debtor a discharge at any time after
confirmation of a plan, if the court determines, after notice and
hearing, that the failure to complete payments under the plan is
due to circumstances for which the debtor should not justly be held
accountable, the distributions made to each creditor under the plan
equal in value the amount that would have been paid to the creditor
had the estate been liquidated under chapter 7 of title 11 at the
date of the hearing under this subsection, and that modification of
the plan is impracticable. The discharge granted under subsection
(b) relieves the debtor from all unsecured debts provided for by
the plan or disallowed under section 502, except nondischargeable
debts described in section 523(a) of title 11 or debts of the type
covered by section 1322(b)(5).
Subsection (d) excepts from any chapter 13 discharge a debt based
on an allowed section 1305(a)(2) postpetition claim, if prior
trustee approval of the incurring of the debt was practicable but
was not obtained.
A chapter 13 discharge obtained through fraud and before the
moving party gained knowledge of the fraud may be revoked by the
court under subsection (e), after notice and hearing, at the
request of any party in interest made within 1 year after the
discharge was granted.

AMENDMENTS
2005 – Subsec. (a). Pub. L. 109-8, Sec. 330(d)(1), substituted
“Subject to subsection (d), as” for “As” in introductory
provisions.
Pub. L. 109-8, Sec. 314(b), added pars. (1) to (4) and struck out
former pars. (1) to (3) which read as follows:
“(1) provided for under section 1322(b)(5) of this title;
“(2) of the kind specified in paragraph (5), (8), or (9) of
section 523(a) of this title; or
“(3) for restitution, or a criminal fine, included in a sentence
on the debtor’s conviction of a crime.”
Pub. L. 109-8, Sec. 213(11), inserted “, and in the case of a
debtor who is required by a judicial or administrative order, or by
statute, to pay a domestic support obligation, after such debtor
certifies that all amounts payable under such order or such statute
that are due on or before the date of the certification (including
amounts due before the petition was filed, but only to the extent
provided for by the plan) have been paid” after “completion by the
debtor of all payments under the plan” in introductory provisions.
Subsec. (a)(2). Pub. L. 109-8, Sec. 707, substituted “section
507(a)(8)(C) or in paragraph (1)(B), (1)(C),” for “paragraph”.
Subsec. (b). Pub. L. 109-8, Sec. 330(d)(2), substituted “Subject
to subsection (d), at” for “At” in introductory provisions.
Subsec. (f). Pub. L. 109-8, Sec. 312(2), added subsec. (f).
Subsec. (g). Pub. L. 109-8, Sec. 106(c), added subsec. (g).
Subsec. (h). Pub. L. 109-8, Sec. 330(d)(3), added subsec. (h).
1994 – Subsec. (a)(2). Pub. L. 103-394, Sec. 501(d)(38)(A),
substituted “(5), (8), or (9)” for “(5) or (8)”.
Subsec. (a)(3). Pub. L. 103-394, Sec. 501(d)(38)(B), struck out
last par. (3). See 1990 Amendment note below.
Pub. L. 103-394, Sec. 302, inserted “, or a criminal fine,” after
“restitution”.
1990 – Subsec. (a)(1). Pub. L. 101-581, Sec. 3(1), and Pub. L.
101-647, Sec. 3103(1), made identical amendments striking “or” at
end.
Subsec. (a)(2). Pub. L. 101-581, Sec. 3(2), and Pub. L. 101-647,
Sec. 3103(2), made identical amendments substituting “; or” for
period at end.
Pub. L. 101-581, Sec. 2(b), and Pub. L. 101-647, Sec. 3102(b),
which directed identical insertions of “or 523(a)(9)” after
“523(a)(5)”, could not be executed because of prior amendment by
Pub. L. 101-508. See below.
Pub. L. 101-508 substituted “paragraph (5) or (8) of section
523(a)” for “section 523(a)(5)”.
Subsec. (a)(3). Pub. L. 101-581, Sec. 3(3), and Pub. L. 101-647,
Sec. 3103(3), made identical amendments adding par. (3).
1984 – Subsec. (e)(1). Pub. L. 98-353, Sec. 532(1), inserted “by
the debtor” after “obtained”.
Subsec. (e)(2). Pub. L. 98-353, Sec. 532(2), substituted “the
requesting party did not know of such fraud until” for “knowledge
of such fraud came to the requesting party”.

EFFECTIVE DATE OF 2005 AMENDMENT
Amendments by Pub. L. 109-8 effective 180 days after Apr. 20,
2005, with amendments by sections 106(c), 213(11), 312(2), 314(b),
and 707 of Pub. L. 109-8 not applicable with respect to cases
commenced under this title before such effective date, except as
otherwise provided, and amendment by section 330(d) of Pub. L. 109-
8 applicable with respect to cases commenced under this title on
or after Apr. 20, 2005, 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 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 1990 AMENDMENTS
Amendment by Pub. L. 101-647 effective Nov. 29, 1990, but not
applicable with respect to cases commenced under this title before
Nov. 29, 1990, see section 3104 of Pub. L. 101-647, set out as a
note under section 523 of this title.
Amendment by Pub. L. 101-581 effective Nov. 15, 1990, but not
applicable with respect to cases commenced under this title before
Nov. 15, 1990, see section 4 of Pub. L. 101-581, set out as a note
under section 523 of this title.
Section 3007(b)(2) of Pub. L. 101-508 provided that: “The
amendment made by paragraph (1) [amending this section] shall not
apply to any case under the provisions of title 11, United States
Code, commenced before the date of the enactment of this Act [Nov.
5, 1990].”

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.

-End-

-CITE-
11 USC Sec. 1329 01/07/2011

-EXPCITE-
TITLE 11 – BANKRUPTCY
CHAPTER 13 – ADJUSTMENT OF DEBTS OF AN INDIVIDUAL WITH REGULAR
INCOME
SUBCHAPTER II – THE PLAN

-HEAD-
Sec. 1329. Modification of plan after confirmation

-STATUTE-
(a) At any time after confirmation of the plan but before the
completion of payments under such plan, the plan may be modified,
upon request of the debtor, the trustee, or the holder of an
allowed unsecured claim, to –
(1) increase or reduce the amount of payments on claims of a
particular class provided for by the plan;
(2) extend or reduce the time for such payments;
(3) alter the amount of the distribution to a creditor whose
claim is provided for by the plan to the extent necessary to take
account of any payment of such claim other than under the plan;
or
(4) reduce amounts to be paid under the plan by the actual
amount expended by the debtor to purchase health insurance for
the debtor (and for any dependent of the debtor if such dependent
does not otherwise have health insurance coverage) if the debtor
documents the cost of such insurance and demonstrates that –
(A) such expenses are reasonable and necessary;
(B)(i) if the debtor previously paid for health insurance,
the amount is not materially larger than the cost the debtor
previously paid or the cost necessary to maintain the lapsed
policy; or
(ii) if the debtor did not have health insurance, the amount
is not materially larger than the reasonable cost that would be
incurred by a debtor who purchases health insurance, who has
similar income, expenses, age, and health status, and who lives
in the same geographical location with the same number of
dependents who do not otherwise have health insurance coverage;
and
(C) the amount is not otherwise allowed for purposes of
determining disposable income under section 1325(b) of this
title;

and upon request of any party in interest, files proof that a
health insurance policy was purchased.

(b)(1) Sections 1322(a), 1322(b), and 1323(c) of this title and
the requirements of section 1325(a) of this title apply to any
modification under subsection (a) of this section.
(2) The plan as modified becomes the plan unless, after notice
and a hearing, such modification is disapproved.
(c) A plan modified under this section may not provide for
payments over a period that expires after the applicable commitment
period under section 1325(b)(1)(B) after the time that the first
payment under the original confirmed plan was due, unless the
court, for cause, approves a longer period, but the court may not
approve a period that expires after five years after such time.

-SOURCE-
(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2651; Pub. L. 98-353, title
III, Secs. 319, 533, July 10, 1984, 98 Stat. 357, 389; Pub. L. 109-
8, title I, Sec. 102(i), title III, Sec. 318(4), Apr. 20, 2005,
119 Stat. 34, 94.)

-MISC1-
HISTORICAL AND REVISION NOTES

SENATE REPORT NO. 95-989
At any time prior to the completion of payments under a confirmed
plan, the plan may be modified, after notice and hearing, to change
the amount of payments to creditors or a particular class of
creditors and to extend or reduce the payment period. A modified
plan may not contain any provision which could not be included in
an original plan as prescribed by section 1322. A modified plan may
not call for payments to be made beyond four years as measured from
the date of the commencement of payments under the original plan.

AMENDMENTS
2005 – Subsec. (a)(4). Pub. L. 109-8, Sec. 102(i), added par.
(4).
Subsec. (c). Pub. L. 109-8, Sec. 318(4), substituted “the
applicable commitment period under section 1325(b)(1)(B)” for
“three years”.
1984 – Subsec. (a). Pub. L. 98-353, Secs. 319, 533(1), (2),
inserted “of the plan” after “confirmation”, substituted “such
plan” for “a plan”, and inserted provisions respecting requests by
the debtor, the trustee, or the holder of an allowed unsecured
claim for modification.
Subsec. (a)(3). Pub. L. 98-353, Sec. 533(3), substituted “plan
to” for “plan, to”.

EFFECTIVE DATE OF 2005 AMENDMENT
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.

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.

-End-

-CITE-
11 USC Sec. 1330 01/07/2011

-EXPCITE-
TITLE 11 – BANKRUPTCY
CHAPTER 13 – ADJUSTMENT OF DEBTS OF AN INDIVIDUAL WITH REGULAR
INCOME
SUBCHAPTER II – THE PLAN

-HEAD-
Sec. 1330. Revocation of an order of confirmation

-STATUTE-
(a) On request of a party in interest at any time within 180 days
after the date of the entry of an order of confirmation under
section 1325 of this title, and after notice and a hearing, the
court may revoke such order if such order was procured by fraud.
(b) If the court revokes an order of confirmation under
subsection (a) of this section, the court shall dispose of the case
under section 1307 of this title, unless, within the time fixed by
the court, the debtor proposes and the court confirms a
modification of the plan under section 1329 of this title.

-SOURCE-
(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2651.)

-MISC1-
HISTORICAL AND REVISION NOTES

LEGISLATIVE STATEMENTS
Section 1331 of the House bill and Senate amendment is deleted in
the House amendment.
Special tax provision: Section 1331 of title 11 of the House bill
and the comparable provisions in sections 1322 and 1327(d) of the
Senate amendment, pertaining to assessment and collection of taxes
in wage earner plans, are deleted, and the governing rule is placed
in section 505(c) of the House amendment. The provisions of both
bills allowing assessment and collection of taxes after
confirmation of the wage-earner plan are modified to allow
assessment and collection after the court fixes the fact and amount
of a tax liability, including administrative period taxes,
regardless of whether this occurs before or after confirmation of
the plan. The provision of the House bill limiting the collection
of taxes to those assessed before one year after the filing of the
petition is eliminated, thereby leaving the period of limitations
on assessment of these nondischargeable tax liabilities the usual
period provided by the Internal Revenue Code [Title 26].

SENATE REPORT NO. 95-989
The court may revoke an order of confirmation procured by fraud,
after notice and hearing, on application of a party in interest
filed within 180 days after the entry of the order. Thereafter,
unless a modified plan is confirmed, the court is to convert or
dismiss the chapter 13 case as provided in section 1307.

-End-

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