United States Code

11 U.S.C. § 1326 — Payments

Section 1326 sets the timing and order of Chapter 13 plan payments. Under subsection (a), unless the court orders otherwise, the debtor begins payments within 30 days after the plan is filed or the order for relief, whichever is earlier, and the trustee holds them until confirmation is granted or denied. Subsection (b) lists what must be paid at each distribution, and subsection (c) provides that the trustee pays creditors.

In Chapter 13, money starts moving well before a judge approves anything. Section 1326 is the provision that says when the first payment is due, who holds it, what happens if the plan is never confirmed, and which claims come off the top of every distribution. If you are trying to work out what you owe and when, this is the section that answers it.

When do Chapter 13 plan payments start?

Subsection (a)(1) sets the deadline. Unless the court orders otherwise, the debtor commences payments not later than 30 days after the date the plan is filed or the order for relief, whichever is earlier. That date typically arrives well before any confirmation hearing, so the first payment generally comes due long before a judge has ruled on the plan. The subsection then describes the amount in three parts. Subparagraph (A) is the amount the plan proposes to pay the trustee. Subparagraph (B) is the amount scheduled in a lease of personal property, paid directly to the lessor for the portion of the obligation coming due after the order for relief. Subparagraph (C) is adequate protection paid directly to a creditor holding an allowed claim secured by personal property, to the extent the claim comes from the debtor's purchase of that property, again for the portion falling due after the order for relief. Read together, they describe one obligation split across a trustee payment and, where they apply, direct payments.

What happens to my payments before the plan is confirmed?

Subsection (a)(2) tells the trustee to retain payments made under paragraph (1)(A) until confirmation is either granted or denied. Nothing is distributed to general creditors in the meantime. If the plan is confirmed, the trustee distributes those funds in accordance with the plan as soon as is practicable. If the plan is not confirmed, the trustee returns to the debtor any of those payments that were not previously paid out and are not yet due and owing to creditors, after deducting any unpaid claim allowed under section 503(b). So a denied confirmation does not mean the money simply disappears, but the return is a net figure rather than the full amount paid in. Subsection (a)(3) adds flexibility while the case is pending: subject to section 363, and upon notice and a hearing, the court may modify, increase, or reduce the payments required under subsection (a) before a plan is confirmed. Courts consider that request on the record before them.

Can I pay a car lender or lessor directly instead of through the trustee?

Subsections (a)(1)(B) and (a)(1)(C) describe two direct payments. The first is the amount scheduled in a lease of personal property, paid to the lessor. The second is adequate protection paid to a creditor holding an allowed claim secured by personal property, where the claim is attributable to the debtor's purchase of that property. Both cover only the portion of the obligation becoming due after the order for relief. Each of these subparagraphs carries the same two conditions. The direct payment reduces the payment to the trustee under subparagraph (A) by the amount paid, so the total is not doubled. And the debtor must provide the trustee with evidence of the payment, including the amount and the date it was made. The evidence requirement is written into the statute itself, not left to local practice, which is why trustees ask for proof of these payments rather than taking them on trust.

What gets paid first out of each plan payment?

Subsection (b) sets an order that applies before or at the time of each payment to creditors under the plan. First, any unpaid claim of the kind specified in section 507(a)(2). Second, if a standing trustee appointed under section 586(b) of title 28 is serving in the case, the percentage fee fixed for that trustee under section 586(e)(1)(B) of title 28. Third, unpaid compensation allowed to a chapter 7 trustee because of the conversion or dismissal of the debtor's prior case under section 707(b), where the case was converted to chapter 13 or dismissed and refiled under it. That third item is paid monthly, prorated over the remaining duration of the plan, and capped by the formula in subparagraph (B): the greater of the fixed amount stated in clause (i), or the amount payable to unsecured nonpriority creditors under the plan multiplied by five percent and divided by the number of months in the plan. Subsection (c) then provides that, except as the plan or the confirmation order says otherwise, the trustee makes payments to creditors.

Do I have to show proof of insurance on a car I am keeping?

Subsection (a)(4) sets a separate 60-day deadline running from the date the chapter 13 case is filed. It applies to a debtor who retains possession of personal property that is either subject to a lease or securing a claim attributable in whole or in part to the purchase price of that property. A financed or leased vehicle is the common example, but the text is written in terms of personal property generally. Within that 60 days, the debtor provides the lessor or secured creditor with reasonable evidence of the maintenance of any required insurance coverage relating to the use or ownership of the property. The obligation is ongoing, not a one-time filing: the subsection requires the debtor to continue providing that evidence for as long as the debtor retains possession. The statute does not define what makes evidence reasonable, and it does not state a consequence for missing the deadline within this section.

What if a chapter 7 trustee's fee was discharged in an earlier case?

Subsection (d) addresses that specific situation, and it opens with "notwithstanding any other provision of this title," which signals that it overrides the general rules elsewhere. Paragraph (d)(1) provides that the compensation referred to in subsection (b)(3) — unpaid chapter 7 trustee compensation from a prior case converted or dismissed under section 707(b) — is payable and may be collected by the trustee under that paragraph even if the amount was discharged in a prior case under this title. In other words, a prior discharge does not by itself take that particular item off the table in the later chapter 13 case. Paragraph (d)(2) then limits it: that compensation is payable in a chapter 13 case only to the extent subsection (b)(3) permits, which is the prorated monthly amount subject to the cap in subparagraph (B). The two paragraphs work as a pair — one preserves the claim, the other confines how much of it can be collected each month.

This summary is our plain-English explanation, written to help you find the right part of the text below. The section itself is the authority — where the two differ, the text controls.

Text of 11 U.S.C. § 1326

Reproduced in full from the official source, verified as of July 2026. View it at the source.

(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; <sup>1</sup> 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. 95–598, Nov. 6, 1978, 92 Stat. 2650; Pub. L. 98–353, title III, §§318(a), 531, July 10, 1984, 98 Stat. 357, 389; Pub. L. 99–554, title II, §§230, 283(z), Oct. 27, 1986, 100 Stat. 3103, 3118; Pub. L. 103–394, title III, §307, Oct. 22, 1994, 108 Stat. 4135; Pub. L. 109–8, title III, §309(c)(2), title XII, §1224, title XV, §1502(a)(10), Apr. 20, 2005, 119 Stat. 83, 199, 217.)

Notes and amendment history

Published by the official source alongside the section above. These notes record how the text has changed over time and the reasoning behind those changes. They are not the operative rule — the enacted text is the section itself.

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

**2005**—Subsec. (a). Pub. L. 109–8, §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, §1502(a)(10), substituted "507(a)(2)" for "507(a)(1)".

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

Subsec. (d). Pub. L. 109–8, §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, §283(z), substituted "payment" for "payments" in last sentence.

Subsec. (b). Pub. L. 99–554, §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, §318(a)(2), added subsec. (a). Former subsec. (a) redesignated (b).

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

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

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

Statutory Notes and Related Subsidiaries

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.

Court Rules and Judicial Documents

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 Jan. 30, 2025, 90 F.R. 8941, effective Apr. 1, 2025, 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 section 104 of this title.

By notice dated Jan. 31, 2022, 87 F.R. 6625, effective Apr. 1, 2022, in subsec. (b)(3), dollar amount "25" was adjusted to "25".

By notice dated Feb. 5, 2019, 84 F.R. 3488, effective Apr. 1, 2019, in subsec. (b)(3), dollar amount "25" was adjusted to "25".

By notice dated Feb. 16, 2016, 81 F.R. 8748, effective Apr. 1, 2016, in subsec. (b)(3), dollar amount "25" was adjusted to "25".

By notice dated Feb. 12, 2013, 78 F.R. 12089, effective Apr. 1, 2013, in subsec. (b)(3), dollar amount "25" was adjusted to "25".

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".

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".

<sup>1</sup> See Adjustment of Dollar Amounts notes below.

Guides that rely on 11 U.S.C. § 1326

Plain-language explanations on this site that cite this section.

By Antonio G. Jimenez, Esq. · Florida Bar No. 21022

Last reviewed July 26, 2026 · Sources verified July 26, 2026 · How we verify

Every figure on this page is drawn from a primary legal source and checked against our canonical legal database before publication. Bankruptcy.law is not a law firm and does not provide legal advice.

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