11 U.S. Code § 1322 - Contents of plan
For adjustment of certain dollar amounts specified in this section, that is not reflected in text, see Adjustment of Dollar Amounts note below.
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.
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.
2010—Subsec. (a). Pub. L. 111–327, § 2(a)(43)(A), struck out “shall” after “plan” in introductory provisions.
Subsec. (a)(1) to (3). Pub. L. 111–327, § 2(a)(43)(B)–(D), inserted “shall” before “provide”.
Subsec. (a)(4). Pub. L. 111–327, § 2(a)(43)(E), struck out “a plan” before “may provide”.
2005—Subsec. (a)(4). Pub. L. 109–8, § 213(8), added par. (4).
Subsec. (b)(10), (11). Pub. L. 109–8, § 213(9), added par. (10) and redesignated former par. (10) as (11).
Subsec. (d). Pub. L. 109–8, § 318(1), amended subsec. (d) generally. Prior to amendment, subsec. (d) read as follows: “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.”
Subsec. (f). Pub. L. 109–8, § 224(d), added subsec. (f).
1994—Subsecs. (c), (d). Pub. L. 103–394, § 301, added subsec. (c) and redesignated former subsec. (c) as (d).
Subsec. (e). Pub. L. 103–394, § 305(c), added subsec. (e).
1984—Subsec. (a)(2). Pub. L. 98–353, § 528(a), inserted a comma after “payments”.
Subsec. (b)(1). Pub. L. 98–353, § 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, § 528(b)(1), inserted “, or leave unaffected the rights of the holders of any class of claims”.
Subsec. (b)(4). Pub. L. 98–353, § 528(b)(2), inserted “other” after “claim or any”.
Subsec. (b)(7). Pub. L. 98–353, § 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, § 528(b)(4), struck out “any” before “part of a claim”.
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.
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.
The dollar amounts specified in this section were adjusted by notices of the Judicial Conference of the United States pursuant to section 104 of this title as follows:
By notice dated Feb. 12, 2013, 78 F.R. 12089, effective Apr. 1, 2013, in subsec. (d), dollar amount “625” was adjusted to “675” each time it appeared. See notice of the Judicial Conference of the United States set out as a note under section 104 of this title.
By notice dated Feb. 19, 2010, 75 F.R. 8747, effective Apr. 1, 2010, in subsec. (d)(1)(C), (2)(C), dollar amount “575” was adjusted to “625”.
By notice dated Feb. 7, 2007, 72 F.R. 7082, effective Apr. 1, 2007, in subsec. (d), dollar amount “525” was adjusted to “575” each time it appeared.
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