Conditions of use · Every effort has been made to
reproduce the code accurately. However there could be errors which would
change the effect of the code. Permission to use these materials is given
only on the condition that the user will be solely responsible for verifying the
accuracy of the information contained herein.x
Text size · You may adjust the size of the text from
your browser's control bar: View, Text Size.
Printing · If the top menu bar stays at the top of the
window as you scroll in your browser, return the browser to the top of the page
before printing or the menu bar may obscure some text. You may print
selected pages of the web page by printing from File, Page Preview
instead of Print. More printing
tips.
Annotations · We have added notes linking to cases and
other information to some sections of the code. You may chose to
or
the annotations.
Redline Display · The Bankruptcy Code
shown is as amended by The Bankruptcy Abuse Prevention and Consumer
Protection Act of 2005. You may choose to or
the redline version showing the changes made by the act.
Link to the Code · You may link your web page directly
to this version of the code, or to any subsection. More link
information.
TITLE
11. BANKRUPTCY · UNITED STATES CODE
Chapter 13.
Adjustment of Debts of an Individual with Regular Income
Subchapter I. Officers, Administration, and the Estate
§ 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
Chapter 13.
Adjustment of Debts of an Individual with Regular Income
Subchapter I. Officers, Administration, and the
Estate
11
USC § 1301. Stay of action against codebtor
(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.
[Rev. 5-25-05]
11
USC § 1302. Trustee
(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(2), 704(a)(3),
704(a)(4),
704(5),
704(6),
704(7),
and 704(9)
of this title; [sic--BAPCPA made each numbered
subsection part of subsection (a)]
(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.
[Rev. 5-25-05]
11
USC § 1303. Rights and powers of debtor
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.
[Rev. 5-25-05]
11
USC § 1304. Debtor engaged in business
(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(8) of this title. [sic--BAPCPA made each
numbered subsection part of subsection (a)]
[Rev. 5-25-05]
11
USC § 1305. Filing and allowance of postpetition claims
(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.
[Rev. 5-26-05]
11
USC § 1306. Property of the estate
(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.
[Rev. 5-26-05]
11
USC § 1307. Conversion or dismissal
(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
(e) 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;
(10) only on request of the United States trustee, failure to timely file
the information required by paragraph
(2) of section
521;
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
(e) 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.
[Rev. 5-26-05]
11
USC § 1308. Filing of prepetition tax returns
(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
this subsection, if the debtor demonstrates by a preponderance of the
evidence that the failure to file a return as required under this subsection
is attributable to circumstances beyond the control of the debtor, the court
may extend the filing period established by the trustee under this
subsection for--
(A) a period of not more than 30 days for returns described in
paragraph (1); and
(B) a period not to extend after the applicable extended due date for a
return described in paragraph (2).
(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.
[Rev. 5-26-05]
Subchapter II. The Plan
11
USC § 1321. Filing of plan
The debtor shall file a plan.
[Rev. 5-27-05]
11
USC § 1322. Contents of plan
(a) The plan shall--
(1) 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) 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, provide the
same treatment for each claim within a particular class;
and
(4) notwithstanding any other
provision of this section, a plan 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.
[Dollar amounts in subsections 523(a)(2)(C)(i) and (ii)
are adjusted on April 1 every 3 years by section
104. Adjusted amounts effective
are in brackets.]
(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.
[Rev. 5-27-05]
11
USC § 1323. Modification of plan before confirmation
(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.
Rev. 5-27-05]
11
USC § 1324. Confirmation hearing
(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.
Rev. 5-27-05]
11
USC § 1325. Confirmation of plan
(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
1328.
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.
(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) 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.
[Dollar amounts in subsections 523(a)(2)(C)(i) and (ii) are
adjusted on April 1 every 3 years by section
104. Adjusted amounts effective
are in brackets.]
(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.
Rev. 5-27-05]
11
USC § 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) 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 [Adjusted
every 3 years by section
104.]; 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).
Rev. 5-27-05]
11
USC § 1327. Effect of confirmation
(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.
Rev. 5-27-05]
11
USC § 1328. Discharge
(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).
Rev. 5-27-05]
11
USC § 1329. Modification of plan after confirmation
(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.
Rev. 5-28-05]
11
USC § 1330. Revocation of an order of confirmation
(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.
Rev. 5-28-05]
|
|