11 U.S.C. Section 1322 -- Contents of Chapter 13 Plan

What Is Section 1322?

Section 1322 of Title 11 of the United States Code (Contents of Plan (Chapter 13)) is a foundational provision of the Bankruptcy Code. It specifies what must and may be included in a Chapter 13 repayment plan. The plan is the central document of a Chapter 13 case -- it determines how much you pay, to whom, and for how long.

Key Provisions of Section 1322

Section 1322 includes mandatory and permissive provisions:

• 1322(a) -- Mandatory Provisions:
  • Submit sufficient future earnings to the trustee for plan payments
  • Pay all priority claims in full (unless the holder agrees otherwise)
  • Treat all claims within a class the same
• 1322(b) -- Permissive Provisions (what you CAN include):
  • Modify rights of secured creditors (except primary home mortgage -- the "anti-modification" rule)
  • Cure defaults on any debt, including mortgages
  • Pay claims over the life of the plan (3-5 years)
  • Pay co-debtors directly
  • Provide for assumption or rejection of executory contracts
• 1322(d) -- Plan Length: The plan cannot exceed 5 years. If your current monthly income is above the state median, the plan must be 5 years (60 months). Below median, the plan can be 3-5 years.

How This Affects You

How Section 1322 shapes your Chapter 13:

• Mortgage cure: 1322(b)(5) lets you cure mortgage arrears over the life of the plan while maintaining regular payments. This is the primary tool for stopping foreclosure.
• Car cramdown: 1322(b)(2) allows modification of car loan terms (combined with Section 506), reducing the secured claim to the car's value if the 910-day rule does not apply.
• Priority payment: Past-due child support, alimony, and certain taxes must be paid in full through the plan. This often drives up the plan payment significantly.
• Primary mortgage protection: The anti-modification rule under 1322(b)(2) prevents modifying the rights of a lender whose claim is secured only by your primary residence. However, you can still cure arrears under 1322(b)(5).

Related Bankruptcy Code Sections

Section 1322 works in conjunction with several other provisions of the Bankruptcy Code:

• Section 1325 -- Confirmation requirements for the plan
• Section 506 -- Cramdown valuation
• Keep Your House -- Mortgage cure in practice

Understanding how these sections interact is critical for anyone navigating the bankruptcy process, whether as a debtor, creditor, or attorney.