Bankruptcy Code

Bankruptcy is a legal declaration that allows some debtors to discharge their unsecured debts. The text of this statute is provided as general information to the public. It may be amended, revised, or rescinded at any time without notice. This information is not intended to be legal advice. For more information, please see our disclaimer.

11 U.S.C. § 1226. Payments

(a) Payments and funds received by the trustee 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. If a plan is not confirmed, the trustee shall return any such payments to the debtor, after deducting--
(1) any unpaid claim allowed under section 503(b) of this title [11 USCS § 503(b)]; and
(2) if a standing trustee is serving in the case, the percentage fee fixed for such standing trustee.

(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 [11 USCS § 507(a)(2)]; and
(2) if a standing trustee appointed under section 1202(c) of this title [11 USCS § 1202(c)] is serving in the case, the percentage fee fixed for such standing trustee under section 1202(d) of this title [11 USCS § 1202(d)].

(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.