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Bankruptcy by Keyword:

"Chapter 13 Plan"

Related Keywords: Applicable commitment period . Best interest of creditors test . Chapter 13 Plan Modification .

Definitions from the USDOJ

  • confirmation: Bankruptcy judges's approval of a plan of reorganization or liquidation in chapter 11, or payment plan in chapter 12 or 13.
  • plan: A debtor's detailed description of how the debtor proposes to pay creditors' claims over a fixed period of time.

Case Law Topics

  • Chapter 13: Plan provisions, Miscellaneous issues

    Sometimes debtors want to propose extra contractual rights regarding disclosure of how the creditor is applying payments or timing of payments. Creditors often object. Here are cases that discuss various plan proposals.

  • Chapter 13: When debts are considered 'domestic support payments' for purposes of repayment priority in a chapter 13 plan

    Payments for domestic support get priority treatment under a chapter 13 plan. (i.e. they get paid first) So it matters allot whether a debt is classified as this kind of debt. Lately there have been cases that are expanding this definition to include repayment of welfare or foodstamp overpayments.

  • Chapter 13: Plan modification issues: timing, valuations, surrender etc.

    Section 1329 governs plan modification

  • Chapter 13: Paying mortgages outside the plan

  • Chapter 13: Mortgage modification, when allowed

    Section 1332(b)(2) prevents cramdown of residential mortgages which it describes as claims secured by a primary residence. Here are cases that talk about whether specific fact patterns do or do not fit within the protection of this section.

  • Chapter 13: Length of plan for above median income debtors

    Uses 707 (b)(2)(A)(ii)(I) (via for Chapter 13 1325(b)(1)(B): "applicable commitment period." (i.e. plan length 3 or 5 years). (Same code section that determines Chapter 7 "presumption of abuse" in means test.)
    707 (b)(2)(A)(ii)(I) = "disposable income" (snapshot of "current monthly income" (CMI) at time of filing)
    1325(b)(1)((B) = "projected disposable income" (forward-looking, but by what method? consider actual facts or apply mechanical projection of 'snapshot' over next 60 months.)

    "Under the law predating BAPCPA, a chapter 13 plan may not be confirmed over the objection of the trustee or an unsecured creditor unless the debtor either pays unsecured creditors in full or devotes all "projected disposable income" to the plan for at least three years. Section 1325(b).
    BAPCPA makes several important changes in the calculation of disposable income,

    If the debtor's annualized current monthly income is larger than the State's median, allowable expenses are determined as provided by the means test under 707(b)(2).
    Conversely, if the debtor's annualized current monthly income is smaller than the State's median, then allowable expenses are those that are reasonably necessary for the maintenance and support of the debtor and the debtor's dependents without reference to 707(b)(2)importing for some purposes the provisions of 11 U.S.C. 707(b)(2) allowances and calculations.

    Finally, the BAPCPA introduces a new term in 1325(b)(1)(B): "applicable commitment period." If the annualized current monthly income of the debtor and the debtor's spouse is above the State median, the debtor must pay all disposable income into the plan for a five-year period. However, if the annualized current monthly income of the debtor and the debtor's spouse is below the State median, the debtor must pay all disposable income into the plan for only three years. "

  • Chapter 13: Favoring one unsecured creditor over another in a Chapter 13 plan

    Because student loan debt is nondischargeable, debtors tend to want to give it more attention than other unsecured debts when it comes to their Chapter 13 plan. These cases explore various attempts to do that inside of "outside" the plan.

  • Chapter 13: Attorney Fee Issues

  • Chapter 13: "applicable commitment period" issues / rebuttal / conversions 1325(b)

    A debtor's income determines the lenght of a Chapter 13 plan, also called the "applicable commitment period" that is the result of the Chapter 13 version of the means test. (See section 132___ . Caselaw centers on timing income measurement in conversions from Chapter 7 (do you restart the clock?), whether a zero-payment plan has to be 5 years, and issues about certain types of income that is excluded from income for this'bright-line" provisio, while still relevant under other parts of the code (e.g. good faith, ability to pay, etc.)

  • Chapter 13: Debtor must have sufficient income to fund plan to be eligible for Chapter 13

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