US (United States) Code. Title 11. Chapter 13: Adjustement of debts of an individual with regular income

Codificación normativa de EEUU (Estados Unidos). Legislación federal estadounidense # Bankruptcy

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11 USC CHAPTER 13 - ADJUSTMENT OF DEBTS OF AN INDIVIDUAL

WITH REGULAR INCOME 01/06/03

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TITLE 11 - BANKRUPTCY

CHAPTER 13 - ADJUSTMENT OF DEBTS OF AN INDIVIDUAL WITH REGULAR

INCOME

.

-HEAD-

CHAPTER 13 - ADJUSTMENT OF DEBTS OF AN INDIVIDUAL WITH REGULAR

INCOME

-MISC1-

SUBCHAPTER I - OFFICERS, ADMINISTRATION, AND THE ESTATE

Sec.

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.

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.

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in sections 101, 103, 109, 321, 326,

329, 330, 346, 347, 348, 362, 363, 365, 502, 706, 1106, 1112 of

this title; title 7 section 2008h; title 15 section 1673; title 20

section 1087; title 28 sections 157, 586, 1930.

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11 USC SUBCHAPTER I - OFFICERS, ADMINISTRATION, AND THE

ESTATE 01/06/03

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TITLE 11 - BANKRUPTCY

CHAPTER 13 - ADJUSTMENT OF DEBTS OF AN INDIVIDUAL WITH REGULAR

INCOME

SUBCHAPTER I - OFFICERS, ADMINISTRATION, AND THE ESTATE

.

-HEAD-

SUBCHAPTER I - OFFICERS, ADMINISTRATION, AND THE ESTATE

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11 USC Sec. 1301 01/06/03

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TITLE 11 - BANKRUPTCY

CHAPTER 13 - ADJUSTMENT OF DEBTS OF AN INDIVIDUAL WITH REGULAR

INCOME

SUBCHAPTER I - OFFICERS, ADMINISTRATION, AND THE ESTATE

-HEAD-

Sec. 1301. Stay of action against codebtor

-STATUTE-

(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.

-SOURCE-

(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2645; Pub. L. 98-353, title

III, Sec. 313, 524, July 10, 1984, 98 Stat. 355, 388.)

-MISC1-

HISTORICAL AND REVISION NOTES

LEGISLATIVE STATEMENTS

Section 1301 of the House amendment is identical with the

provision contained in section 1301 of the House bill and adopted

by the Senate amendment. Section 1301(c)(1) indicates that a basis

for lifting the stay is that the debtor did not receive

consideration for the claim by the creditor, or in other words, the

debtor is really the ''codebtor.'' As with other sections in title

11, the standard of receiving consideration is a general rule, but

where two co-debtors have agreed to share liabilities in a

different manner than profits it is the individual who does not

ultimately bear the liability that is protected by the stay under

section 1301.

SENATE REPORT NO. 95-989

Subsection (a) automatically stays the holder of a claim based on

a consumer debt of the chapter 13 debtor from acting or proceeding

in any way, except as authorized pursuant to subsections (b) and

(c), against an individual or the property of an individual liable

with the chapter 13 debtor, unless such codebtor became liable in

the ordinary course of his business, or unless the case is closed,

dismissed, or converted to another chapter.

Under the terms of the agreement with the codebtor who is not in

bankruptcy, the creditor has a right to collect all payments to the

extent they are not made by the debtor at the time they are due.

To the extent to which a chapter 13 plan does not propose to pay a

creditor his claims, the creditor may obtain relief from the court

from the automatic stay and collect such claims from the codebtor.

Conversely, a codebtor obtains the benefit of any payments made to

the creditor under the plan. If a debtor defaults on scheduled

payments under the plan, then the codebtor would be liable for the

remaining deficiency; otherwise, payments not made under the plan

may never be made by the codebtor. The obligation of the codebtor

to make the creditor whole at the time payments are due remains.

The automatic stay under this section pertains only to the

collection of a consumer debt, defined by section 101(7) of this

title to mean a debt incurred by an individual primarily for a

personal, family, or household purpose. Therefore, not all debts

owed by a chapter 13 debtor will be subject to the stay of the

codebtor, particularly those business debts incurred by an

individual with regular income, as defined by section 101(24) of

this title, engaged in business, that is permitted by virtue of

section 109(b) and section 1304 to obtain chapter 13 relief.

Subsection (b) excepts the giving of notice of dishonor of a

negotiable instrument from the reach of the codebtor stay.

Under subsection (c), if the codebtor has property out of which

the creditor's claim can be satisfied, the court can grant relief

from the stay absent the transfer of a security interest in that

property by the codebtor to the creditor. Correspondingly, if

there is reasonable cause to believe that property is about to be

disposed of by the codebtor which could be used to satisfy his

obligation to the creditor, the court should lift the stay to allow

the creditor to perfect his rights against such property.

Likewise, if property is subject to rapid depreciation or decrease

in value the stay should be lifted to allow the creditor to protect

his rights to reach such property. Otherwise, the creditor's

interest would be irreparably harmed by such stay. Property which

could be used to satisfy the claim could be disposed of or

encumbered and placed beyond the reach of the creditor. The

creditor should be allowed to protect his rights to reach property

which could satisfy his claim and prevent its erosion in value,

disposal, or encumbrance.

HOUSE REPORT NO. 95-595

This section is new. It is designed to protect a debtor

operating under a chapter 13 individual repayment plan case by

insulating him from indirect pressures from his creditors exerted

through friends or relatives that may have cosigned an obligation

of the debtor. The protection is limited, however, to ensure that

the creditor involved does not lose the benefit of the bargain he

made for a cosigner. He is entitled to full compensation,

including any interest, fees, and costs provided for by the

agreement under which the debtor obtained his loan. The creditor

is simply required to share with other creditors to the extent that

the debtor will repay him under the chapter 13 plan. The creditor

is delayed, but his substantive rights are not affected.

Subsection (a) is the operative subsection. It stays action by a

creditor after an order for relief under chapter 13. The 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 has

secured the debt, unless the individual became liable or secured

the debt in the ordinary course of his business, or the case is

closed, dismissed, or converted to chapter 7 or 11.

Subsection (b) permits the creditor, notwithstanding the stay, to

present a negotiable instrument and to give notice of dishonor of

the instrument, in order to preserve his substantive rights against

the codebtor as required by applicable nonbankruptcy law.

Subsection (c) requires the court to grant relief from the stay

in certain circumstances. The court must grant relief to the

extent that the debtor does not propose to pay, under the plan, the

amount owed to the creditor. The court must also grant relief to

the extent that the debtor was really the codebtor in the

transaction, that is, to the extent that the nondebtor party

actually received the consideration for the claim held by the

creditor. Finally, the court must grant relief to the extent that

the creditor's interest would be irreparably harmed by the stay,

for example, where the codebtor filed bankruptcy himself, or

threatened to leave the locale, or lost his job.

AMENDMENTS

1984 - Subsec. (c)(3). Pub. L. 98-353, Sec. 524, inserted

''continuation of'' after ''by''.

Subsec. (d). Pub. L. 98-353, Sec. 313, added subsec. (d).

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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 106, 108, 348 of this

title.

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11 USC Sec. 1302 01/06/03

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TITLE 11 - BANKRUPTCY

CHAPTER 13 - ADJUSTMENT OF DEBTS OF AN INDIVIDUAL WITH REGULAR

INCOME

SUBCHAPTER I - OFFICERS, ADMINISTRATION, AND THE ESTATE

-HEAD-

Sec. 1302. Trustee

-STATUTE-

(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(3),

704(4), 704(5), 704(6), 704(7), and 704(9) of this title;

(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; and

(5) ensure that the debtor commences making timely payments

under section 1326 of this title.

(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.

-SOURCE-

(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2645; Pub. L. 98-353, title

III, Sec. 314, 525, July 10, 1984, 98 Stat. 356, 388; Pub. L.

99-554, title II, Sec. 228, 283(w), Oct. 27, 1986, 100 Stat. 3103,

3118; Pub. L. 103-394, title V, Sec. 501(d)(37), Oct. 22, 1994, 108

Stat. 4147.)

-MISC1-

HISTORICAL AND REVISION NOTES

LEGISLATIVE STATEMENTS

Section 1302 of the House amendment adopts a provision contained

in the Senate amendment instead of the position taken in the House

bill. Sections 1302(d) and (e) are modeled on the standing trustee

system contained in the House bill with the court assuming

supervisory functions in districts not under the pilot program.

SENATE REPORT NO. 95-989

The principal administrator in a chapter 13 case is the chapter

13 trustee. Experience under chapter XIII of the Bankruptcy Act

(chapter 13 of former title 11) has shown that the more efficient

and effective wage earner programs have been conducted by standing

chapter XIII trustees who exercise a broad range of

responsibilities in both the design and the effectuation of debtor

plans.

Subsection (a) provides administrative flexibility by permitting

the bankruptcy judge to appoint an individual from the panel of

trustees established pursuant to 28 U.S.C. Sec. 604(f) and

qualified under section 322 of title 11, either to serve as a

standing trustee in all chapter 13 cases filed in the district or a

portion thereof, or to serve in a single case.

Subsection (b)(1) makes it clear that the chapter 13 trustee is

no mere disbursing agent of the monies paid to him by the debtor

under the plan (section 1322(a)(1)), by imposing upon him certain

relevant duties of a liquidation trustee prescribed by section 704

of this title.

Subsection (b)(2) requires the chapter 13 trustee to appear

before and be heard by the bankruptcy court whenever the value of

property secured by a lien or the confirmation or modification of a

plan after confirmation as provided by sections 1323-1325 is

considered by the court.

Subsection (b)(3) requires the chapter 13 trustee to advise and

counsel the debtor while under chapter 13, except on matters more

appropriately left to the attorney for the debtor. The chapter 13

trustee must also assist the debtor in performance under the plan

by attempting to tailor the requirements of the plan to the

changing needs and circumstances of the debtor during the extension

period.

Subsection (c) imposes on the trustee in a chapter 13 case filed

by a debtor engaged in business the investigative and reporting

duties normally required of a chapter 11 debtor or trustee as

prescribed by section 1106(a)(3) and (4).

HOUSE REPORT NO. 95-595

Subsection (d) gives the trustee an additional duty if the debtor

is engaged in business, as defined in section 1304. The trustee

must perform the duties specified in sections 1106(a)(3) and

1106(a)(4), relating to investigation of the debtor.

-REFTEXT-

REFERENCES IN TEXT

Chapter XIII of the Bankruptcy Act, referred to in subsec.

(b)(3), is chapter XIII of act July 1, 1898, ch. 541, as added June

22, 1938, ch. 575, Sec. 1, 52 Stat. 930, which was classified to

chapter 13 (Sec. 1001 et seq.) of former Title 11.

-MISC2-

AMENDMENTS

1994 - Subsec. (b)(3). Pub. L. 103-394 struck out ''and'' at end.

1986 - Subsec. (a). Pub. L. 99-554, Sec. 228(1), amended subsec.

(a) generally. Prior to amendment, subsec. (a) read as follows:

''If the court has appointed an individual under subsection (d) of

this section 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 court shall appoint a person to serve as trustee in

the case.''

Subsec. (d). Pub. L. 99-554, Sec. 228(2), struck out subsec. (d)

which read as follows: ''If the number of cases under this chapter

commenced in a particular judicial district so warrant, the court

may appoint one or more individuals to serve as standing trustee

for such district in cases under this chapter.''

Subsec. (e). Pub. L. 99-554, Sec. 283(w), which directed the

amendment of par. (1) by substituting ''set for such individual''

for ''fix'' could not be executed in view of the repeal of subsec.

(e) by section 228(2) of Pub. L. 99-554. See 1984 Amendment note

below.

Pub. L. 99-554, Sec. 228(2), struck out subsec. (e) which read as

follows:

''(1) A court that has appointed an individual under subsection

(d) of this section to serve as standing trustee in cases under

this chapter shall set for such individual -

''(A) a maximum annual compensation, not to exceed the lowest

annual rate of basic pay in effect for grade GS-16 of the General

Schedule prescribed under section 5332 of title 5; and

''(B) a percentage fee, not to exceed ten percent, based on

such maximum annual compensation and the actual, necessary

expenses incurred by such individual as standing trustee.

''(2) Such individual shall collect such percentage fee from all

payments under plans in the cases under this chapter for which such

individual serves as standing trustee. Such individual shall pay

annually to the Treasury -

''(A) any amount by which the actual compensation received by

such individual exceeds five percent of all such payments made

under plans in cases under this chapter for which such individual

serves as standing trustee; and

''(B) any amount by which the percentage fee fixed under

paragraph (1)(B) of this subsection for all such cases exceeds -

''(i) such individual's actual compensation for such cases,

as adjusted under subparagraph (A) of this paragraph; plus

''(ii) the actual, necessary expenses incurred by such

individual as standing trustee in such cases.''

1984 - Subsec. (b)(1). Pub. L. 98-353, Sec. 314(1), substituted

''704(7), and 704(9) of this title'' for ''and 704(8) of this

title''.

Subsec. (b)(2). Pub. L. 98-353, Sec. 314(2), struck out ''and''

at the end.

Subsec. (b)(3) to (5). Pub. L. 98-353, Sec. 525(a), added par.

(3) and redesignated former pars. (3) and (4) as (4) and (5),

respectively.

Pub. L. 98-353, Sec. 314(3), (4), substituted ''; and'' for the

period at end of par. (3) and added par. (4).

Subsec. (e)(1). Pub. L. 98-353, Sec. 525(b)(1), which directed

the amendment of par. (4) by substituting ''set for such

individual'' for ''fix'' was executed to par. (1) as the probable

intent of Congress.

Subsec. (e)(1)(A). Pub. L. 98-353, Sec. 525(b)(2), struck out

''for such individual'' after ''a maximum annual compensation''.

Subsec. (e)(2)(A). Pub. L. 98-353, Sec. 525(b)(3), substituted

''received by'' for ''of'', and ''of all such payments made'' for

''upon all payments''.

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 228 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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 322, 326, 546, 557 of

this title.

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11 USC Sec. 1303 01/06/03

-EXPCITE-

TITLE 11 - BANKRUPTCY

CHAPTER 13 - ADJUSTMENT OF DEBTS OF AN INDIVIDUAL WITH REGULAR

INCOME

SUBCHAPTER I - OFFICERS, ADMINISTRATION, AND THE ESTATE

-HEAD-

Sec. 1303. Rights and powers of debtor

-STATUTE-

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.

-SOURCE-

(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2646.)

-MISC1-

HISTORICAL AND REVISION NOTES

LEGISLATIVE STATEMENTS

Section 1303 of the House amendment specifies rights and powers

that the debtor has exclusive of the trustees. The section does

not imply that the debtor does not also possess other powers

concurrently with the trustee. For example, although section 1323

is not specified in section 1303, certainly it is intended that the

debtor has the power to sue and be sued.

SENATE REPORT NO. 95-989

A chapter 13 debtor is vested with the identical rights and

powers, and is subject to the same limitations in regard to their

exercise, as those given a liquidation trustee by virtue of section

363(b), (d), (e), (f), and (h) of title 11, relating to the sale,

use or lease of property.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 106 of this title.

-CITE-

11 USC Sec. 1304 01/06/03

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TITLE 11 - BANKRUPTCY

CHAPTER 13 - ADJUSTMENT OF DEBTS OF AN INDIVIDUAL WITH REGULAR

INCOME

SUBCHAPTER I - OFFICERS, ADMINISTRATION, AND THE ESTATE

-HEAD-

Sec. 1304. Debtor engaged in business

-STATUTE-

(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.

-SOURCE-

(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2646; Pub. L. 98-353, title

III, Sec. 311(b)(2), 526, July 10, 1984, 98 Stat. 355, 389.)

-MISC1-

HISTORICAL AND REVISION NOTES

LEGISLATIVE STATEMENTS

Section 1304(b) of the House amendment adopts the approach taken

in the comparable section of the Senate amendment as preferable to

the position taken in the House bill.

SENATE REPORT NO. 95-989

Increased access to the simpler, speedier, and less expensive

debtor relief provisions of chapter 13 is accomplished by

permitting debtors engaged in business to proceed under chapter 13,

provided their income is sufficiently stable and regular to permit

compliance with a chapter 13 plan (section 101(24)) and that the

debtor (or the debtor and spouse) do not owe liquidated,

noncontingent unsecured debts of $50,000, or liquidated,

noncontingent secured debts of $200,000 (Sec. 109(d)).

Section 1304(a) states that a self-employed individual who incurs

trade credit in the production of income is a debtor engaged in

business.

Subsection (b) empowers a chapter 13 debtor engaged in business

to operate his business, subject to the rights, powers and

limitations that pertain to a trustee under sections 363(c) and 364

of title 11, and subject to such further limitations and conditions

as the court may prescribe.

Subsection (c) requires a chapter 13 debtor engaged in business

to file with the court certain financial statements relating to the

operation of the business.

AMENDMENTS

1984 - Subsec. (b). Pub. L. 98-353, Sec. 526, struck out the

comma after ''of the debtor''.

Subsec. (c). Pub. L. 98-353, Sec. 311(b)(2), substituted

''section 704(8)'' for ''section 704(7)''.

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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 363, 364 of this title.

-CITE-

11 USC Sec. 1305 01/06/03

-EXPCITE-

TITLE 11 - BANKRUPTCY

CHAPTER 13 - ADJUSTMENT OF DEBTS OF AN INDIVIDUAL WITH REGULAR

INCOME

SUBCHAPTER I - OFFICERS, ADMINISTRATION, AND THE ESTATE

-HEAD-

Sec. 1305. Filing and allowance of postpetition claims

-STATUTE-

(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.

-SOURCE-

(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2647.)

-MISC1-

HISTORICAL AND REVISION NOTES

LEGISLATIVE STATEMENTS

Section 1305(a)(2) of the House amendment modifies similar

provisions contained in the House and Senate bills by restricting

application of the paragraph to a consumer debt. Debts of the

debtor that are not consumer debts should not be subjected to

section 1305(c) or section 1328(d) of the House amendment.

Section 1305(b) of the House amendment represents a technical

modification of similar provisions contained in the House bill and

Senate amendment.

The House amendment deletes section 1305(d) of the Senate

amendment as unnecessary. Section 502(b)(1) is sufficient to

disallow any claim to the extent the claim represents the usurious

interest or any other charge forbidden by applicable law. It is

anticipated that the Rules of Bankruptcy Procedure may require a

creditor filing a proof of claim in a case under chapter 13 to

include an affirmative statement as contemplated by section 1305(d)

of the Senate amendment.

SENATE REPORT NO. 95-989

Section 1305, exclusively applicable in chapter 13 cases,

supplements the provisions of sections 501-511 of title 11, dealing

with the filing and allowance of claims. Sections 501-511 apply in

chapter 13 cases by virtue of section 103(a) of this title.

Section 1305(a) provides for the filing of a proof of claim for

taxes and other obligations incurred after the filing of the

chapter 13 case. Subsection (b) prescribes that section 502 of

title 11 governs the allowance of section 1305(a) claims, except

that its standards shall be applied as of the date of allowance of

the claim, rather than the date of filing of the petition.

Subsection (c) requires the disallowance of a postpetition claim

for property or services necessary for the debtor's performance

under the plan, if the holder of the claim knew or should have

known that prior approval by the trustee of the debtor's incurring

of the obligation was practicable and was not obtained.

HOUSE REPORT NO. 95-595

Subsection (a) permits the filing of a proof of a claim against

the debtor that is for taxes that become payable to a governmental

unit while the case is pending, or that arises after the date of

the filing of the petition for property or services that are

necessary for the debtor's performance under the plan, such as auto

repairs in order that the debtor will be able to get to work, or

medical bills. The effect of the latter provision, in paragraph

(2), is to treat postpetition credit extended to a chapter 13

debtor the same as a prepetition claim for purposes of allowance,

distribution, and so on.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 106, 348, 1322, 1328 of

this title.

-CITE-

11 USC Sec. 1306 01/06/03

-EXPCITE-

TITLE 11 - BANKRUPTCY

CHAPTER 13 - ADJUSTMENT OF DEBTS OF AN INDIVIDUAL WITH REGULAR

INCOME

SUBCHAPTER I - OFFICERS, ADMINISTRATION, AND THE ESTATE

-HEAD-

Sec. 1306. Property of the estate

-STATUTE-

(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.

-SOURCE-

(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2647; Pub. L. 99-554, title

II, Sec. 257(u), Oct. 27, 1986, 100 Stat. 3116.)

-MISC1-

HISTORICAL AND REVISION NOTES

LEGISLATIVE STATEMENTS

Section 1306(a)(2) adopts a provision contained in the Senate

amendment in preference to a similar provision contained in the

House bill.

SENATE REPORT NO. 95-989

Section 541 is expressly made applicable to chapter 13 cases by

section 103(a). Section 1306 broadens the definition of property of

the estate for chapter 13 purposes to include all property acquired

and all earnings from services performed by the debtor after the

commencement of the case.

Subsection (b) nullifies the effect of section 521(3), otherwise

applicable, by providing that a chapter 13 debtor need not

surrender possession of property of the estate, unless required by

the plan or order of confirmation.

AMENDMENTS

1986 - Subsec. (a). Pub. L. 99-554 inserted reference to chapter

12 in pars. (1) and (2).

EFFECTIVE DATE OF 1986 AMENDMENT

Amendment by Pub. L. 99-554 effective 30 days after Oct. 27,

1986, but not applicable to cases commenced under this title before

that date, see section 302(a), (c)(1) of Pub. L. 99-554, set out as

a note under section 581 of Title 28, Judiciary and Judicial

Procedure.

-CITE-

11 USC Sec. 1307 01/06/03

-EXPCITE-

TITLE 11 - BANKRUPTCY

CHAPTER 13 - ADJUSTMENT OF DEBTS OF AN INDIVIDUAL WITH REGULAR

INCOME

SUBCHAPTER I - OFFICERS, ADMINISTRATION, AND THE ESTATE

-HEAD-

Sec. 1307. Conversion or dismissal

-STATUTE-

(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; or

(10) only on request of the United States trustee, failure to

timely file the information required by paragraph (2) of section

521.

(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) 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.

(f) 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.

-SOURCE-

(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2647; Pub. L. 98-353, title

III, Sec. 315, 527, July 10, 1984, 98 Stat. 356, 389; Pub. L.

99-554, title II, Sec. 229, 257(v), Oct. 27, 1986, 100 Stat. 3103,

3116.)

-MISC1-

HISTORICAL AND REVISION NOTES

LEGISLATIVE STATEMENTS

Section 1307(a) is derived from the Senate amendment in

preference to a comparable provision contained in the House bill.

SENATE REPORT NO. 95-989

Subsections (a) and (b) confirm, without qualification, the

rights of a chapter 13 debtor to convert the case to a liquidating

bankruptcy case under chapter 7 of title 11, at any time, or to

have the chapter 13 case dismissed. Waiver of any such right is

unenforceable. Subsection (c) specifies various conditions for the

exercise of the power of the court to convert a chapter 13 case to

one under chapter 7 or to dismiss the case. Subsection (d) deals

with the conversion of a chapter 13 case to one under chapter 11.

Subsection (e) prohibits conversion of the chapter 13 case filed by

a farmer to chapter 7 or 11 except at the request of the debtor.

No case is to be converted from chapter 13 to any other chapter,

unless the debtor is an eligible debtor under the new chapter.

HOUSE REPORT NO. 95-595

Subsection (f) reinforces section 109 by prohibiting conversion

to a chapter under which the debtor is not eligible to proceed.

AMENDMENTS

1986 - Subsec. (b). Pub. L. 99-554, Sec. 257(v)(1), inserted

reference to section 1208 of this title.

Subsec. (c). Pub. L. 99-554, Sec. 229(1)(A), inserted ''or the

United States trustee'' after ''party in interest'' in provisions

preceding par. (1).

Subsec. (c)(9), (10). Pub. L. 99-554, Sec. 229(1)(B)-(D), added

pars. (9) and (10).

Subsec. (d). Pub. L. 99-554, Sec. 257(v)(2), inserted reference

to chapter 12.

Pub. L. 99-554, Sec. 229(2), inserted ''or the United States

trustee'' after ''party in interest''.

Subsec. (e). Pub. L. 99-554, Sec. 257(v)(3), inserted reference

to chapter 12.

1984 - Subsec. (b). Pub. L. 98-353, Sec. 527(a), inserted a comma

after ''time''.

Subsec. (c)(4). Pub. L. 98-353, Sec. 315(2), added par. (4).

Former par. (4) redesignated (5).

Subsec. (c)(5). Pub. L. 98-353, Sec. 315(1), 527(b)(1),

redesignated former par. (4) as (5) and inserted ''a request made

for'' before ''additional''. Former par. (5) redesignated (6).

Subsec. (c)(6). Pub. L. 98-353, Sec. 315(1), redesignated former

par. (5) as (6). Former par. (6) redesignated (7).

Subsec. (c)(7). Pub. L. 98-353, Sec. 315(1), 527(b)(2),

redesignated former par. (6) as (7) and substituted ''or'' for

''and''. Former par. (7) redesignated (8).

Subsec. (c)(8). Pub. L. 98-353, Sec. 315(1), 527(b)(3),

redesignated former par. (7) as (8) and inserted ''other than

completion of payments under the plan'' after ''in the plan''.

EFFECTIVE DATE OF 1986 AMENDMENT

Effective date and applicability of amendment by section 229 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 257 of Pub. L. 99-554 effective 30 days

after Oct. 27, 1986, but not applicable to cases commenced under

this title before that date, see section 302(a), (c)(1) 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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 348, 365, 706, 726, 1330

of this title.

-CITE-

11 USC SUBCHAPTER II - THE PLAN 01/06/03

-EXPCITE-

TITLE 11 - BANKRUPTCY

CHAPTER 13 - ADJUSTMENT OF DEBTS OF AN INDIVIDUAL WITH REGULAR

INCOME

SUBCHAPTER II - THE PLAN

.

-HEAD-

SUBCHAPTER II - THE PLAN

-CITE-

11 USC Sec. 1321 01/06/03

-EXPCITE-

TITLE 11 - BANKRUPTCY

CHAPTER 13 - ADJUSTMENT OF DEBTS OF AN INDIVIDUAL WITH REGULAR

INCOME

SUBCHAPTER II - THE PLAN

-HEAD-

Sec. 1321. Filing of plan

-STATUTE-

The debtor shall file a plan.

-SOURCE-

(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2648.)

-MISC1-

HISTORICAL AND REVISION NOTES

SENATE REPORT NO. 95-989

Chapter 13 contemplates the filing of a plan only by the debtor.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1307 of this title.

-CITE-

11 USC Sec. 1322 01/06/03

-EXPCITE-

TITLE 11 - BANKRUPTCY

CHAPTER 13 - ADJUSTMENT OF DEBTS OF AN INDIVIDUAL WITH REGULAR

INCOME

SUBCHAPTER II - THE PLAN

-HEAD-

Sec. 1322. Contents of plan

-STATUTE-

(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; and

(3) if the plan classifies claims, provide the same treatment

for each claim within a particular class.

(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; and

(10) 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) The plan may not provide for payments over a period that is

longer than three years, unless the court, for cause, approves a

longer period, but the court may not approve a period that is

longer than five years.

(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.

-SOURCE-

(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2648; Pub. L. 98-353, title

III, Sec. 316, 528, July 10, 1984, 98 Stat. 356, 389; Pub. L.

103-394, title III, Sec. 301, 305(c), Oct. 22, 1994, 108 Stat.

4131, 4134.)

-MISC1-

HISTORICAL AND REVISION NOTES

LEGISLATIVE STATEMENTS

Section 1322(b)(2) of the House amendment represents a compromise

agreement between similar provisions in the House bill and Senate

amendment. Under the House amendment, the plan may modify the

rights of holders of secured claims other than a claim secured by a

security interest in real property that is the debtor's principal

residence. It is intended that a claim secured by the debtor's

principal residence may be treated with under section 1322(b)(5) of

the House amendment.

Section 1322(c) adopts a 5-year period derived from the House

bill in preference to a 4-year period contained in the Senate

amendment. A conforming change is made in section 1329(c) adopting

the provision in the House bill in preference to a comparable

provision in the Senate amendment.

Tax payments in wage earner plans: The House bill provided that a

wage earner plan had to provide that all priority claims would be

paid in full. The Senate amendment contained a special rule in

section 1325(c) requiring that Federal tax claims must be paid in

cash, but that such tax claims can be paid in deferred cash

installments under the general rules applicable to the payment of

debts in a wage earner plan, unless the Internal Revenue Service

negotiates with the debtor for some different medium or time for

payment of the tax liability.

The House bill adopts the substance of the Senate amendment rule

under section 1322(a)(2) of the House amendment. A wage earner

plan must provide for full payment in deferred cash payments, of

all priority claims, unless the holder of a particular claim agrees

with a different treatment of such claim.

SENATE REPORT NO. 95-989

Chapter 13 is designed to serve as a flexible vehicle for the

repayment of part or all of the allowed claims of the debtor.

Section 1322 emphasizes that purpose by fixing a minimum of

mandatory plan provisions.

Subsection (a) requires that the plan submit whatever portion of

the future income of the debtor is necessary to implement the plan

to the control of the trustee, mandates payment in full of all

section 507 priority claims, and requires identical treatment for

all claims of a particular class.

Subsection (b) permits a chapter 13 plan to (1) divide unsecured

claims not entitled to priority under section 507 into classes in

the manner authorized for chapter 11 claims; (2) modify the rights

of holders of secured and unsecured claims, except claims wholly

secured by real estate mortgages; (3) cure or waive any default;

(4) propose payments on unsecured claims concurrently with payments

on any secured claim or any other class of unsecured claims; (5)

provide for curing any default on any secured or unsecured claim on

which the final payment is due after the proposed final payment

under the plan; (6) provide for payment of any allowed postpetition

claim; (7) assume or reject any previously unrejected executory

contract or unexpired lease of the debtor; (8) propose the payment

of all or any part of any claim from property of the estate or of

the debtor; (9) provide for the vesting of property of the estate;

and (10) include any other provision not inconsistent with other

provisions of title 11.

Subsection (c) limits the payment period under the plan to 3

years, except that a 4-year payment period may be permitted by the

court.

AMENDMENTS

1994 - Subsecs. (c), (d). Pub. L. 103-394, Sec. 301, added

subsec. (c) and redesignated former subsec. (c) as (d).

Subsec. (e). Pub. L. 103-394, Sec. 305(c), added subsec. (e).

1984 - Subsec. (a)(2). Pub. L. 98-353, Sec. 528(a), inserted a

comma after ''payments''.

Subsec. (b)(1). Pub. L. 98-353, Sec. 316, inserted ''; 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''.

Subsec. (b)(2). Pub. L. 98-353, Sec. 528(b)(1), inserted '', or

leave unaffected the rights of the holders of any class of

claims''.

Subsec. (b)(4). Pub. L. 98-353, Sec. 528(b)(2), inserted

''other'' after ''claim or any''.

Subsec. (b)(7). Pub. L. 98-353, Sec. 528(b)(3), inserted

''subject to section 365 of this title,'' before ''provide'',

substituted '', rejection, or assignment'' for ''or rejection'',

and substituted ''under such section'' for ''under section 365 of

this title''.

Subsec. (b)(8). Pub. L. 98-353, Sec. 528(b)(4), struck out

''any'' before ''part of a claim''.

EFFECTIVE DATE OF 1994 AMENDMENT

Amendment by section 301 of Pub. L. 103-394 effective Oct. 22,

1994, and not applicable with respect to cases commenced under this

title before Oct. 22, 1994, and amendment by section 305(c) of Pub.

L. 103-394 effective Oct. 22, 1994, and applicable only to

agreements entered into after 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 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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1323, 1328, 1329 of this

title.

-CITE-

11 USC Sec. 1323 01/06/03

-EXPCITE-

TITLE 11 - BANKRUPTCY

CHAPTER 13 - ADJUSTMENT OF DEBTS OF AN INDIVIDUAL WITH REGULAR

INCOME

SUBCHAPTER II - THE PLAN

-HEAD-

Sec. 1323. Modification of plan before confirmation

-STATUTE-

(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.

-SOURCE-

(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2649.)

-MISC1-

HISTORICAL AND REVISION NOTES

SENATE REPORT NO. 95-989

The debtor is permitted to modify the plan before confirmation

without court approval so long as the modified plan, which becomes

the plan on filing, complies with the requirements of section 1322.

The original acceptance or rejection of a plan by the holder of a

secured claim remains binding unless the modified plan changes the

rights of the holder and the holder withdraws or alters its earlier

acceptance or rejection.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1329 of this title.

-CITE-

11 USC Sec. 1324 01/06/03

-EXPCITE-

TITLE 11 - BANKRUPTCY

CHAPTER 13 - ADJUSTMENT OF DEBTS OF AN INDIVIDUAL WITH REGULAR

INCOME

SUBCHAPTER II - THE PLAN

-HEAD-

Sec. 1324. Confirmation hearing

-STATUTE-

After notice, the court shall hold a hearing on confirmation of

the plan. A party in interest may object to confirmation of the

plan.

-SOURCE-

(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2649; Pub. L. 98-353, title

III, Sec. 529, July 10, 1984, 98 Stat. 389; Pub. L. 99-554, title

II, Sec. 283(x), Oct. 27, 1986, 100 Stat. 3118.)

-MISC1-

HISTORICAL AND REVISION NOTES

SENATE REPORT NO. 95-989

Any party in interest may object to the confirmation of a plan,

as distinguished from merely rejecting a plan. An objection to

confirmation is predicated on failure of the plan or the procedures

employed prior to confirmation to conform with the requirements of

chapter 13. The bankruptcy judge is required to provide notice and

an opportunity for hearing any such objection to confirmation.

AMENDMENTS

1986 - Pub. L. 99-554 struck out ''the'' after ''object to''.

1984 - Pub. L. 98-353 struck out ''the'' before ''confirmation of

the plan''.

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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 28 section 586.

-CITE-

11 USC Sec. 1325 01/06/03

-EXPCITE-

TITLE 11 - BANKRUPTCY

CHAPTER 13 - ADJUSTMENT OF DEBTS OF AN INDIVIDUAL WITH REGULAR

INCOME

SUBCHAPTER II - THE PLAN

-HEAD-

Sec. 1325. Confirmation of plan

-STATUTE-

(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 the holder of such claim retain

the lien securing such claim; and

(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; or

(C) the debtor surrenders the property securing such claim to

such holder; and

(6) the debtor will be able to make all payments under the plan

and to comply with the plan.

(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 three-year period

beginning on the date that the first payment is due under the

plan will be applied to make payments under the plan.

(2) 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.

(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.

-SOURCE-

(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2649; Pub. L. 98-353, title

III, Sec. 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.)

-MISC1-

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

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 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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1307, 1322, 1329, 1330 of

this title.

-CITE-

11 USC Sec. 1326 01/06/03

-EXPCITE-

TITLE 11 - BANKRUPTCY

CHAPTER 13 - ADJUSTMENT OF DEBTS OF AN INDIVIDUAL WITH REGULAR

INCOME

SUBCHAPTER II - THE PLAN

-HEAD-

Sec. 1326. Payments

-STATUTE-

(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.

(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)(1)

of this title; and

(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.

(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.

-SOURCE-

(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2650; Pub. L. 98-353, title

III, Sec. 318(a), 531, July 10, 1984, 98 Stat. 357, 389; Pub. L.

99-554, title II, Sec. 230, 283(z), Oct. 27, 1986, 100 Stat. 3103,

3118; Pub. L. 103-394, title III, Sec. 307, Oct. 22, 1994, 108

Stat. 4135.)

-MISC1-

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.

AMENDMENTS

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, Sec. 283(z), substituted

''payment'' for ''payments'' in last sentence.

Subsec. (b). Pub. L. 99-554, Sec. 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, Sec. 318(a)(2), added subsec.

(a). Former subsec. (a) redesignated (b).

Subsec. (b). Pub. L. 98-353, Sec. 318(a)(1), redesignated subsec.

(a) as (b). Former subsec. (b) redesignated (c).

Subsec. (b)(2). Pub. L. 98-353, Sec. 531, inserted ''of this

title'' after ''1302(d)''.

Subsec. (c). Pub. L. 98-353, Sec. 318(a)(1), redesignated former

subsec. (b) as (c).

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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 347, 1302, 1307 of this

title.

-CITE-

11 USC Sec. 1327 01/06/03

-EXPCITE-

TITLE 11 - BANKRUPTCY

CHAPTER 13 - ADJUSTMENT OF DEBTS OF AN INDIVIDUAL WITH REGULAR

INCOME

SUBCHAPTER II - THE PLAN

-HEAD-

Sec. 1327. Effect of confirmation

-STATUTE-

(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.

-SOURCE-

(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2650.)

-MISC1-

HISTORICAL AND REVISION NOTES

SENATE REPORT NO. 95-989

Subsection (a) binds the debtor and each creditor to the

provisions of a confirmed plan, whether or not the claim of the

creditor is provided for by the plan and whether or not the

creditor has accepted, rejected, or objected to the plan. Unless

the plan itself or the order confirming the plan otherwise

provides, confirmation is deemed to vest all property of the estate

in the debtor, free and clear of any claim or interest of any

creditor provided for by the plan.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 106 of this title.

-CITE-

11 USC Sec. 1328 01/06/03

-EXPCITE-

TITLE 11 - BANKRUPTCY

CHAPTER 13 - ADJUSTMENT OF DEBTS OF AN INDIVIDUAL WITH REGULAR

INCOME

SUBCHAPTER II - THE PLAN

-HEAD-

Sec. 1328. Discharge

-STATUTE-

(a) As soon as practicable after completion by the debtor of all

payments under the plan, 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) of this title;

(2) of the kind specified in paragraph (5), (8), or (9) of

section 523(a) of this title; or

(3) for restitution, or a criminal fine, included in a sentence

on the debtor's conviction of a crime.

(b) 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.

-SOURCE-

(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2650; Pub. L. 98-353, title

III, Sec. 532, July 10, 1984, 98 Stat. 389; Pub. L. 101-508, title

III, Sec. 3007(b)(1), Nov. 5, 1990, 104 Stat. 1388-28; Pub. L.

101-581, Sec. 2(b), 3, Nov. 15, 1990, 104 Stat. 2865; Pub. L.

101-647, title XXXI, Sec. 3102(b), 3103, Nov. 29, 1990, 104 Stat.

4916; Pub. L. 103-394, title III, Sec. 302, title V, Sec.

501(d)(38), Oct. 22, 1994, 108 Stat. 4132, 4147.)

-MISC1-

HISTORICAL AND REVISION NOTES

LEGISLATIVE STATEMENTS

Section 1328(a) adopts a provision contained in the Senate

amendment permitting the court to approve a waiver of discharge by

the debtor. It is anticipated that such a waiver must be in

writing executed after the order for relief in a case under chapter

13.

SENATE REPORT NO. 95-989

The court is to enter a discharge, unless waived, as soon as

practicable after completion of payments under the plan. The

debtor is to be discharged of all debts provided for by the plan or

disallowed under section 502, except a debt provided for under the

plan the last payment on which was not due until after the

completion of the plan, or a debt incurred for willful and

malicious conversion of or injury to the property or person of

another.

Subsection (b) is the successor to Bankruptcy Act Section 661

(section 1061 of former title 11). This subsection permits the

bankruptcy judge to grant the debtor a discharge at any time after

confirmation of a plan, if the court determines, after notice and

hearing, that the failure to complete payments under the plan is

due to circumstances for which the debtor should not justly be held

accountable, the distributions made to each creditor under the plan

equal in value the amount that would have been paid to the creditor

had the estate been liquidated under chapter 7 of title 11 at the

date of the hearing under this subsection, and that modification of

the plan is impracticable. The discharge granted under subsection

(b) relieves the debtor from all unsecured debts provided for by

the plan or disallowed under section 502, except nondischargeable

debts described in section 523(a) of title 11 or debts of the type

covered by section 1322(b)(5).

Subsection (d) excepts from any chapter 13 discharge a debt based

on an allowed section 1305(a)(2) postpetition claim, if prior

trustee approval of the incurring of the debt was practicable but

was not obtained.

A chapter 13 discharge obtained through fraud and before the

moving party gained knowledge of the fraud may be revoked by the

court under subsection (e), after notice and hearing, at the

request of any party in interest made within 1 year after the

discharge was granted.

AMENDMENTS

1994 - Subsec. (a)(2). Pub. L. 103-394, Sec. 501(d)(38)(A),

substituted ''(5), (8), or (9)'' for ''(5) or (8)''.

Subsec. (a)(3). Pub. L. 103-394, Sec. 501(d)(38)(B), struck out

last par. (3). See 1990 Amendment note below.

Pub. L. 103-394, Sec. 302, inserted '', or a criminal fine,''

after ''restitution''.

1990 - Subsec. (a)(1). Pub. L. 101-581, Sec. 3(1), and Pub. L.

101-647, Sec. 3103(1), made identical amendments striking ''or'' at

end.

Subsec. (a)(2). Pub. L. 101-581, Sec. 3(2), and Pub. L. 101-647,

Sec. 3103(2), made identical amendments substituting ''; or'' for

period at end.

Pub. L. 101-581, Sec. 2(b), and Pub. L. 101-647, Sec. 3102(b),

which directed identical insertions of ''or 523(a)(9)'' after

''523(a)(5)'', could not be executed because of prior amendment by

Pub. L. 101-508. See below.

Pub. L. 101-508 substituted ''paragraph (5) or (8) of section

523(a)'' for ''section 523(a)(5)''.

Subsec. (a)(3). Pub. L. 101-581, Sec. 3(3), and Pub. L. 101-647,

Sec. 3103(3), made identical amendments adding par. (3).

1984 - Subsec. (e)(1). Pub. L. 98-353, Sec. 532(1), inserted ''by

the debtor'' after ''obtained''.

Subsec. (e)(2). Pub. L. 98-353, Sec. 532(2), substituted ''the

requesting party did not know of such fraud until'' for ''knowledge

of such fraud came to the requesting party''.

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 1990 AMENDMENTS

Amendment by Pub. L. 101-647 effective Nov. 29, 1990, but not

applicable with respect to cases commenced under this title before

Nov. 29, 1990, see section 3104 of Pub. L. 101-647, set out as a

note under section 523 of this title.

Amendment by Pub. L. 101-581 effective Nov. 15, 1990, but not

applicable with respect to cases commenced under this title before

Nov. 15, 1990, see section 4 of Pub. L. 101-581, set out as a note

under section 523 of this title.

Section 3007(b)(2) of Pub. L. 101-508 provided that: ''The

amendment made by paragraph (1) (amending this section) shall not

apply to any case under the provisions of title 11, United States

Code, commenced before the date of the enactment of this Act (Nov.

5, 1990).''

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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 523, 524 of this title;

title 12 section 1715z-1a; title 26 sections 6327, 7437.

-CITE-

11 USC Sec. 1329 01/06/03

-EXPCITE-

TITLE 11 - BANKRUPTCY

CHAPTER 13 - ADJUSTMENT OF DEBTS OF AN INDIVIDUAL WITH REGULAR

INCOME

SUBCHAPTER II - THE PLAN

-HEAD-

Sec. 1329. Modification of plan after confirmation

-STATUTE-

(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; or

(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.

(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 three years 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.

-SOURCE-

(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2651; Pub. L. 98-353, title

III, Sec. 319, 533, July 10, 1984, 98 Stat. 357, 389.)

-MISC1-

HISTORICAL AND REVISION NOTES

SENATE REPORT NO. 95-989

At any time prior to the completion of payments under a confirmed

plan, the plan may be modified, after notice and hearing, to change

the amount of payments to creditors or a particular class of

creditors and to extend or reduce the payment period. A modified

plan may not contain any provision which could not be included in

an original plan as prescribed by section 1322. A modified plan may

not call for payments to be made beyond four years as measured from

the date of the commencement of payments under the original plan.

AMENDMENTS

1984 - Subsec. (a). Pub. L. 98-353, Sec. 319, 533(1), (2),

inserted ''of the plan'' after ''confirmation'', substituted ''such

plan'' for ''a plan'', and inserted provisions respecting requests

by the debtor, the trustee, or the holder of an allowed unsecured

claim for modification.

Subsec. (a)(3). Pub. L. 98-353, Sec. 533(3), substituted ''plan

to'' for ''plan, to''.

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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1307, 1328, 1330 of this

title; title 28 section 586.

-CITE-

11 USC Sec. 1330 01/06/03

-EXPCITE-

TITLE 11 - BANKRUPTCY

CHAPTER 13 - ADJUSTMENT OF DEBTS OF AN INDIVIDUAL WITH REGULAR

INCOME

SUBCHAPTER II - THE PLAN

-HEAD-

Sec. 1330. Revocation of an order of confirmation

-STATUTE-

(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.

-SOURCE-

(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2651.)

-MISC1-

HISTORICAL AND REVISION NOTES

LEGISLATIVE STATEMENTS

Section 1331 of the House bill and Senate amendment is deleted in

the House amendment.

Special tax provision: Section 1331 of title 11 of the House bill

and the comparable provisions in sections 1322 and 1327(d) of the

Senate amendment, pertaining to assessment and collection of taxes

in wage earner plans, are deleted, and the governing rule is placed

in section 505(c) of the House amendment. The provisions of both

bills allowing assessment and collection of taxes after

confirmation of the wage-earner plan are modified to allow

assessment and collection after the court fixes the fact and amount

of a tax liability, including administrative period taxes,

regardless of whether this occurs before or after confirmation of

the plan. The provision of the House bill limiting the collection

of taxes to those assessed before one year after the filing of the

petition is eliminated, thereby leaving the period of limitations

on assessment of these nondischargeable tax liabilities the usual

period provided by the Internal Revenue Code (Title 26).

SENATE REPORT NO. 95-989

The court may revoke an order of confirmation procured by fraud,

after notice and hearing, on application of a party in interest

filed within 180 days after the entry of the order. Thereafter,

unless a modified plan is confirmed, the court is to convert or

dismiss the chapter 13 case as provided in section 1307.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1307 of this title.

-CITE-