11 U.S.C. § 1226

Payments

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(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; 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; and(2) if a standing trustee appointed under section 1202(c) 11 See References in Text note below. of this title is serving in the case, the percentage fee fixed for such standing trustee under section 1202(d) 1 of this title.(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.(Added and amended Pub. L. 99–554, title II, § 255, title III, § 302(f), Oct. 27, 1986, 100 Stat. 3111, 3124; Pub. L. 103–65, § 1, Aug. 6, 1993, 107 Stat. 311; Pub. L. 103–394, title V, § 501(d)(36), Oct. 22, 1994, 108 Stat. 4147; Pub. L. 105–277, div. C, title I, § 149(a), Oct. 21, 1998, 112 Stat. 2681–610; Pub. L. 106–5, § 1(1), (2), Mar. 30, 1999, 113 Stat. 9; Pub. L. 106–70, § 1, Oct. 9, 1999, 113 Stat. 1031; Pub. L. 107–8, § 1, May 11, 2001, 115 Stat. 10; Pub. L. 107–17, § 1, June 26, 2001, 115 Stat. 151; Pub. L. 107–170, § 1, May 7, 2002, 116 Stat. 133; Pub. L. 107–171, title X, § 10814(a), May 13, 2002, 116 Stat. 532; Pub. L. 107–377, § 2(a), Dec. 19, 2002, 116 Stat. 3115; Pub. L. 108–73, § 2(a), Aug. 15, 2003, 117 Stat. 891; Pub. L. 108–369, § 2(a), Oct. 25, 2004, 118 Stat. 1749; Pub. L. 109–8, title X, § 1001(a)(1), (c), title XV, § 1502(a)(9), Apr. 20, 2005, 119 Stat. 185, 186, 217.)Editorial NotesReferences in Text

Section 1202(c) and (d) of this title, referred to in subsec. (b)(2), was repealed by section 227 of Pub. L. 99–554, and provisions relating to appointment of and fixing percentage fees for standing trustees are contained in section 586(b) and (e) of Title 28, Judiciary and Judicial Procedure, as amended by section 113(b), (c) of Pub. L. 99–554.

Codification

For repeal of section effective Oct. 1, 1998, and subsequent reenactment of section, see note set out preceding section 1201 of this title.

Amendments

2005—Subsec. (b)(1). Pub. L. 109–8, § 1502(a)(9), substituted “507(a)(2)” for “507(a)(1)”.

1994—Subsec. (b)(2). Pub. L. 103–394 substituted “1202(c)” for “1202(d)” and “1202(d)” for “1202(e)”.

Statutory Notes and Related SubsidiariesEffective Date of 2005 Amendment

Amendment by section 1502(a)(9) of 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 Dates

Permanent reenactment of section effective July 1, 2005, see section 1001(a)(2) of Pub. L. 109–8, set out as a Repeal, Reenactment, and Termination of Chapter note under section 1201 of this title. For effective dates of section and amendments extending periods for which section was reenacted prior to permanent reenactment, see Effective Date and Effective Date of 1999, 2001, 2002, 2003, and 2004 Amendment notes set out under section 1201 of this title.

Notes of Decisions
Cited in 64 cases (11 in the last 5 years), 1987–2026 · leading case: Knudsen v. Internal Revenue Serv., 581 F.3d 696 (8th Cir. 2009).
Knudsen v. Internal Revenue Serv., 581 F.3d 696 (8th Cir. 2009). · cites it 2× “The court then addressed the government's argument that "post-petition claims in Chapter 12 cases are governed by 11 U.S.C. § 1226 , and that when read with 11 U.”
Gordon R. Stahn v. Ray Haeckel, 920 F.2d 555 (8th Cir. 1990). · cites it 4× “See 11 U.S.C. § 1226 (a) (1989). Stahn argues that there is no express provision authorizing the court to order payments prior to plan confirmation.”
Matter of Pianowski, 92 B.R. 225 (Bankr. W.D. Mich. 1988). · cites it 2× “Citrowske states there is “no provision for nor need for a disbursing agent” and it is the trustee’s duty under 11 U.S.C. § 1226 (a) to distribute plan payments.”
Overholt v. Farm Credit Servs. (In Re Overholt), 125 B.R. 202 (S.D. Ohio 1990). · cites it 2× “” 11 U.S.C. § 1226 (c) (1988). The phrase “except as otherwise provided” shows clearly that the trustee is not the only party intended to make distributions under the reorganization plan.”
In Re Juan O. Plata, in Re Catalina Plata, Debtors. Peter H. Arkison, Tr. v. Juan O. Plata, Catalina Plata, 958 F.2d 918 (9th Cir. 1992). · cites it 2× “§ 1227 (a); 6 it obligated the trustee to distribute all payments to the *921 creditors in accord with the plan’s provisions, see 11 U.S.C. § 1226 (a), (c); 7 and it vested in Debtors all rights in any postpetition-acquired property.”
In re Dickens, 513 B.R. 906 (Bankr. E.D. Ark. 2014). · cites it 3× “Furthermore, the trustees’ interpretation of § 586(e)(2), a provision applicable to Chapter 12 cases, makes 11 U.S.C. § 1226 (a)(2) superfluous. This provision provides: *912 .”
Cohen v. Lopez (In Re Lopez), 372 B.R. 40 (9th Cir. BAP 2007). “2, there was a statute more directly on point — 11 U.S.C. § 1226 (c). Nevertheless, the Code employs similar language in the section applicable in Chapter 13 — 28 U.”
In Re Marriott, 161 B.R. 816 (Bankr. S.D. Ill. 1993). · cites it 4× “§ 1225 (a)(5)(B)(ii), which refers to distribution of property by the trustee “or the debtor” and by 11 U.S.C. § 1226 (c), which recognizes an exception to the rule of payment by the trustee.”
United States v. Nazar (In Re Dawes), 415 B.R. 815 (D. Kan. 2009). · cites it 2× “§ § 1226 and 1227 Appellant argues that post-petition claims in Chapter 12 cases are governed *822 by 11 U.S.C. § 1226 , and that when read with 11 U.”
In Re: Roger Evans v. Kathleen McCallister, 69 F.4th 1101 (9th Cir. 2023). “MCCALLISTER 15 11 U.S.C. § 1226 (a) (emphasis added). Section 1194(a) of Chapter 11, Subchapter V, also titled “Payments,” provides as follows: (a) Retention and distribution by trustee.”
In Re Roesner, 153 B.R. 328 (Bankr. D. Kan. 1993). · cites it 3× “11 U.S.C. § 1226 (b)(2). 3 What the standing trustee does with the payments he or she receives from the debt- or is spelled out.”
Greseth v. Fed. Land Bank (In Re Greseth), 78 B.R. 936 (D. Minnesota 1987). “11 U.S.C. § 1226 (b). This statutory scheme places great importance on payment of administrative claims and requires significant attention to those claims by the standing trustee.”
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