US Code

Public Law 119-73 (01/23/2026)

11 U.S.C. § 1326

Payments

(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)
section 507(a)(2) of this title any unpaid claim of the kind specified in ;
(2)
section 586(b) of title 28section 586(e)(1)(B) of title 28 if a standing trustee appointed under is serving in the case, the percentage fee fixed for such standing trustee under ; 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)
1
1 See Adjustment of Dollar Amounts notes below.
$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).

Pub. L. 95–59892 Stat. 2650Pub. L. 98–353, title III98 Stat. 357Pub. L. 99–554, title II100 Stat. 3103Pub. L. 103–394, title III, § 307108 Stat. 4135Pub. L. 109–8, title III, § 309(c)(2)119 Stat. 83(, , ; , §§ 318(a), 531, , , 389; , §§ 230, 283(z), , , 3118; , , ; , title XII, § 1224, title XV, § 1502(a)(10), , , 199, 217.)

Historical and Revision Notes

legislative statements

Section 1326(a)(2) of the House amendment adopts a comparable provision contained in the House bill providing for standing trustees.

senate report no. 95–989

Section 1326 supplements the priorities provisions of section 507. Subsection (a) requires accrued costs of administration and filing fees, as well as fees due the chapter 13 trustee, to be disbursed before payments to creditors under the plan. Subsection (b) makes it clear that the chapter 13 trustee is normally to make distribution to creditors of the payments made under the plan by the debtor.

house report no. 95–595

Subsection (a) requires that before or at the time of each payment any outstanding administrative expenses [and] any percentage fee due for a private standing chapter 13 trustee be paid in full.

Editorial Notes

Amendments

Pub. L. 109–8, § 309(c)(2)2005—Subsec. (a). , 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.

section 503(b) of this title“(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 .”

Pub. L. 109–8, § 1502(a)(10)Subsec. (b)(1). , substituted “507(a)(2)” for “507(a)(1)”.

Pub. L. 109–8, § 1224(1)Subsec. (b)(3). , added par. (3).

Pub. L. 109–8, § 1224(2)Subsec. (d). , added subsec. (d).

Pub. L. 103–3941994—Subsec. (a)(2). inserted “as soon as practicable” before period at end of second sentence.

Pub. L. 99–554, § 283(z)1986—Subsec. (a)(2). , substituted “payment” for “payments” in last sentence.

Pub. L. 99–554, § 230Subsec. (b). , 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).

Pub. L. 98–353, § 318(a)(2)1984—Subsec. (a). , added subsec. (a). Former subsec. (a) redesignated (b).

Pub. L. 98–353, § 318(a)(1)Subsec. (b). , redesignated subsec. (a) as (b). Former subsec. (b) redesignated (c).

Pub. L. 98–353, § 531Subsec. (b)(2). , inserted “of this title” after “1302(d)”.

Pub. L. 98–353, § 318(a)(1)Subsec. (c). , redesignated former subsec. (b) as (c).

Statutory Notes and Related Subsidiaries

Effective Date of 2005 Amendment

Pub. L. 109–8section 1501 of Pub. L. 109–8section 101 of this titleAmendment by effective 180 days after , and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see , set out as a note under .

Effective Date of 1994 Amendment

Pub. L. 103–394section 702 of Pub. L. 103–394section 101 of this titleAmendment by effective , and not applicable with respect to cases commenced under this title before , see , set out as a note under .

Effective Date of 1986 Amendment

section 230 of Pub. L. 99–554Pub. L. 99–554section 581 of Title 28Effective date and applicability of amendment by dependent upon the judicial district involved, see section 302(d), (e) of , set out as a note under , Judiciary and Judicial Procedure.

section 283 of Pub. L. 99–554section 302(a) of Pub. L. 99–554Amendment by effective 30 days after , see .

Effective Date of 1984 Amendment

Pub. L. 98–353section 552(a) of Pub. L. 98–353section 101 of this titleAmendment by effective with respect to cases filed 90 days after , see , set out as a note under .

Court Rules and Judicial Documents

Adjustment of Dollar Amounts

section 104 of this titleThe dollar amounts specified in this section were adjusted by notices of the Judicial Conference of the United States pursuant to as follows:

section 104 of this titleBy notice dated , 90 F.R. 8941, effective , in subsec. (b)(3), dollar amount “25” was adjusted to “25”. See notice of the Judicial Conference of the United States set out as a note under .

By notice dated , 87 F.R. 6625, effective , in subsec. (b)(3), dollar amount “25” was adjusted to “25”.

By notice dated , 84 F.R. 3488, effective , in subsec. (b)(3), dollar amount “25” was adjusted to “25”.

By notice dated , 81 F.R. 8748, effective , in subsec. (b)(3), dollar amount “25” was adjusted to “25”.

By notice dated , 78 F.R. 12089, effective , in subsec. (b)(3), dollar amount “25” was adjusted to “25”.

By notice dated , 75 F.R. 8747, effective , in subsec. (b)(3)(B), dollar amount “25” was adjusted to “25”.

By notice dated , 72 F.R. 7082, effective , in subsec. (b)(3), dollar amount “25” was adjusted to “25”.