(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;
(i)the plan provides that the holder of such claim retain the lien securing such claim; and
(ii)the value, as of the effective date of the plan, of property to be distributed by the trustee or the debtor under the plan on account of such claim is not less than the allowed amount of such claim; 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; and
(7)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.
(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;
(B)the plan provides that all of the debtor’s projected disposable income to be received in the three-year period, or such longer period as the court may approve under section
1222(c), beginning on the date that the first payment is due under the plan will be applied to make payments under the plan; or
(C)the value of the property to be distributed under the plan in the 3-year period, or such longer period as the court may approve under section
1222(c), beginning on the date that the first distribution is due under the plan is not less than the debtor’s projected disposable income for such period.
(2)For purposes of this subsection, “disposable income” means income which is received by the debtor and which is not reasonably necessary to be expended—
(A)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 of the filing of the petition; or
(B)for the payment of expenditures necessary for the continuation, preservation, and operation of the debtor’s business.
(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.
Subsec. (b)(2)(A). Pub. L. 109–8, § 218, inserted “or for a domestic support obligation that first becomes payable after the date of the filing of the petition” after “dependent of the debtor”.
Effective Date of 2005 Amendment
Amendment by sections 213(5), 218, and 1006(a) ofPub. L. 109–8effective 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 ofPub. L. 109–8, set out as a note under section
101 of this title.
The table below lists the classification updates, since Jan. 3, 2012, for this section. Updates to a broader range of sections may be found at the update page for containing chapter, title, etc.
The most recent Classification Table update that we have noticed was Tuesday, August 13, 2013
An empty table indicates that we see no relevant changes listed in the classification tables. If you suspect that our system may be missing something, please double-check with the Office of the Law Revision Counsel.
Description of Change
Statutes at Large
LII has no control over and does not endorse any external Internet site that contains links to or references LII.