Confirmation of Chapter 13 Plans

Personal Bankruptcy Court approval of confirmation of Chapter 13 plans

The standard used for confirmation of a chapter 13 personal bankruptcy plan is provided by 11 U.S.C. 1325. This section states that the court must confirm all personal bankruptcy plans unless specifically disallowed by law. In reviewing compliance with chapter 13 bankruptcy laws, the court requires:

  • All fees paid in full;
  • All trustee payments current;
  • The plan was proposed in good faith;
  • The plan must pay creditors at least the value as would be available if the case had been filed under chapter 7; and
  • The debtor is reasonably capable of making proposed payments through completion.

To overcome creditor objections to confirmation, the debtor must show the court: (A) the value of the property to be distributed under the personal bankruptcy plan is not less than total amounts owed. or (B) the plan provides all of the debtor's projected disposable income to be received in the three-year period beginning on the date that the first payment is due will be applied to payments under the plan.

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