11 U.S.C. § 1325 : US Code - Section 1325: Confirmation of plan

Search 11 U.S.C. § 1325 : US Code - Section 1325: Confirmation of plan

(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 -
(I) the holder of such claim retain the lien securing such
claim until the earlier of -
(aa) the payment of the underlying debt determined under
nonbankruptcy law; or
(bb) discharge under section 1328; and
(II) if the case under this chapter is dismissed or
converted without completion of the plan, such lien shall
also be retained by such holder to the extent recognized by
applicable nonbankruptcy law;
(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; and
(iii) if -
(I) property to be distributed pursuant to this subsection
is in the form of periodic payments, such payments shall be
in equal monthly amounts; and
(II) the holder of the claim is secured by personal
property, the amount of such payments shall not be less than
an amount sufficient to provide to the holder of such claim
adequate protection during the period of the plan; or
(C) the debtor surrenders the property securing such claim to
such holder;
(6) the debtor will be able to make all payments under the plan
and to comply with the plan;
(7) the action of the debtor in filing the petition was in good
faith;
(8) the debtor has paid all amounts that are required to be
paid under a domestic support obligation and that first become
payable after the date of the filing of the petition if the
debtor is required by a judicial or administrative order, or by
statute, to pay such domestic support obligation; and
(9) the debtor has filed all applicable Federal, State, and
local tax returns as required by section 1308.
For purposes of paragraph (5), section 506 shall not apply to a
claim described in that paragraph if the creditor has a purchase
money security interest securing the debt that is the subject of
the claim, the debt was incurred within the 910-day preceding the
date of the filing of the petition, and the collateral for that
debt consists of a motor vehicle (as defined in section 30102 of
title 49) acquired for the personal use of the debtor, or if
collateral for that debt consists of any other thing of value, if
the debt was incurred during the 1-year period preceding that
filing.
(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 applicable commitment
period beginning on the date that the first payment is due under
the plan will be applied to make payments to unsecured creditors
under the plan.
(2) For purposes of this subsection, the term "disposable income"
means current monthly income received by the debtor (other than
child support payments, foster care payments, or disability
payments for a dependent child made in accordance with applicable
nonbankruptcy law to the extent reasonably necessary to be expended
for such child) less amounts reasonably necessary to be expended -
(A)(i) for the maintenance or support of the debtor or a
dependent of the debtor, or for a domestic support obligation,
that first becomes payable after the date the petition is filed;
and
(ii) for charitable contributions (that meet the definition of
"charitable contribution" under section 548(d)(3) (!1) to a
qualified religious or charitable entity or organization (as
defined in section 548(d)(4)) in an amount not to exceed 15
percent of 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.
(3) Amounts reasonably necessary to be expended under paragraph
(2), other than subparagraph (A)(ii) of paragraph (2), shall be
determined in accordance with subparagraphs (A) and (B) of section
707(b)(2), if the debtor has current monthly income, when
multiplied by 12, greater than -
(A) in the case of a debtor in a household of 1 person, the
median family income of the applicable State for 1 earner;
(B) in the case of a debtor in a household of 2, 3, or 4
individuals, the highest median family income of the applicable
State for a family of the same number or fewer individuals; or
(C) in the case of a debtor in a household exceeding 4
individuals, the highest median family income of the applicable
State for a family of 4 or fewer individuals, plus $525 per month
for each individual in excess of 4.
(4) For purposes of this subsection, the "applicable commitment
period" -
(A) subject to subparagraph (B), shall be -
(i) 3 years; or
(ii) not less than 5 years, if the current monthly income of
the debtor and the debtor's spouse combined, when multiplied by
12, is not less than -
(I) in the case of a debtor in a household of 1 person, the
median family income of the applicable State for 1 earner;
(II) in the case of a debtor in a household of 2, 3, or 4
individuals, the highest median family income of the
applicable State for a family of the same number or fewer
individuals; or
(III) in the case of a debtor in a household exceeding 4
individuals, the highest median family income of the
applicable State for a family of 4 or fewer individuals, plus
$525 per month for each individual in excess of 4; and
(B) may be less than 3 or 5 years, whichever is applicable
under subparagraph (A), but only if the plan provides for payment
in full of all allowed unsecured claims over a shorter period.
(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.