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 period
    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)) 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.