Notes on 11 U.S.C. § 1325 : US Code - Notes

Search Notes on 11 U.S.C. § 1325 : US Code - Notes

    (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.



                       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.