11 U.S.C. § 1326 : US Code - Section 1326: Payments

Search 11 U.S.C. § 1326 : US Code - Section 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; 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).