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1321. Filing of plan
The debtor shall file a plan.
1322. Contents of plan
(a) The plan...
(1) shall provide for the submission of all or such portion of future
earnings or other future income of the debtor to the supervision
and control of the trustee as is necessary for the execution of
the plan;
(2) shall provide for the full payment, in deferred cash payments,
of all claims entitled to priority under section 507 of this title,
unless the holder of a particular claim agrees to a different treatment
of such claim;
(3) if the plan classifies claims, shall provide the same treatment
for each claim within a particular class; and
(4) notwithstanding any other provision of this section, may provide
for less than full payment of all amounts owed for a claim entitled
to priority under section 507 (a)(1)(B) only if the plan provides
that all of the debtors projected disposable income for a
5-year period beginning on the date that the first payment is due
under the plan will be applied to make payments under the plan.
(b) Subject to subsections (a) and (c) of this section, the plan
may
(1) designate a class or classes of unsecured claims, as provided
in section 1122 of this title, but may not discriminate unfairly
against any class so designated; however, such plan may treat claims
for a consumer debt of the debtor if an individual is liable on
such consumer debt with the debtor differently than other unsecured
claims;
(2) modify the rights of holders of secured claims, other than a
claim secured only by a security interest in real property that
is the debtors principal residence, or of holders of unsecured
claims, or leave unaffected the rights of holders of any class of
claims;
(3) provide for the curing or waiving of any default;
(4) provide for payments on any unsecured claim to be made concurrently
with payments on any secured claim or any other unsecured claim;
(5) notwithstanding paragraph (2) of this subsection, provide for
the curing of any default within a reasonable time and maintenance
of payments while the case is pending on any unsecured claim or
secured claim on which the last payment is due after the date on
which the final payment under the plan is due;
(6) provide for the payment of all or any part of any claim allowed
under section 1305 of this title;
(7) subject to section 365 of this title, provide for the assumption,
rejection, or assignment of any executory contract or unexpired
lease of the debtor not previously rejected under such section;
(8) provide for the payment of all or part of a claim against the
debtor from property of the estate or property of the debtor;
(9) provide for the vesting of property of the estate, on confirmation
of the plan or at a later time, in the debtor or in any other entity;
(10) provide for the payment of interest accruing after the date
of the filing of the petition on unsecured claims that are nondischargeable
under section 1328 (a), except that such interest may be paid only
to the extent that the debtor has disposable income available to
pay such interest after making provision for full payment of all
allowed claims; and
(11) include any other appropriate provision not inconsistent with
this title.
(c) Notwithstanding subsection (b)(2) and applicable nonbankruptcy
law
(1) a default with respect to, or that gave rise to, a lien on the
debtors principal residence may be cured under paragraph (3)
or (5) of subsection (b) until such residence is sold at a foreclosure
sale that is conducted in accordance with applicable nonbankruptcy
law; and
(2) in a case in which the last payment on the original payment
schedule for a claim secured only by a security interest in real
property that is the debtors principal residence is due before
the date on which the final payment under the plan is due, the plan
may provide for the payment of the claim as modified pursuant to
section 1325 (a)(5) of this title.
(d)
(1) If the current monthly income of the debtor and the debtors
spouse combined, when multiplied by 12, is not less 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,
the plan may not provide for payments over a period that is longer
than 5 years.
(2) If the current monthly income of the debtor and the debtors
spouse combined, when multiplied by 12, is less 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,
the plan may not provide for payments over a period that is longer
than 3 years, unless the court, for cause, approves a longer period,
but the court may not approve a period that is longer than 5 years.
(e) Notwithstanding subsection (b)(2) of this section and sections
506 (b) and 1325 (a)(5) of this title, if it is proposed in a plan
to cure a default, the amount necessary to cure the default, shall
be determined in accordance with the underlying agreement and applicable
nonbankruptcy law.
(f) A plan may not materially alter the terms of a loan described
in section 362 (b)(19) and any amounts required to repay such loan
shall not constitute disposable income under section
1325.
1323. Modification of plan
before confirmation
(a) The debtor may modify the plan at any time before confirmation,
but may not modify the plan so that the plan as modified fails to
meet the requirements of section 1322 of this title.
(b) After the debtor files a modification under this section, the
plan as modified becomes the plan.
(c) Any holder of a secured claim that has accepted or rejected
the plan is deemed to have accepted or rejected, as the case may
be, the plan as modified, unless the modification provides for a
change in the rights of such holder from what such rights were under
the plan before modification, and such holder changes such holders
previous acceptance or rejection.
1324. Confirmation hearing
(a) Except as provided in subsection (b) and after notice, the court
shall hold a hearing on confirmation of the plan. A party in interest
may object to confirmation of the plan.
(b) The hearing on confirmation of the plan may be held not earlier
than 20 days and not later than 45 days after the date of the meeting
of creditors under section 341 (a), unless the court determines
that it would be in the best interests of the creditors and the
estate to hold such hearing at an earlier date and there is no objection
to such earlier date.
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 debtors 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 debtors 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.
1326. Payments
(a)
(1) Unless the court orders otherwise, the debtor shall commence
making payments not later than 30 days after the date of the filing
of the plan or the order for relief, whichever is earlier, in the
amount
(A) proposed by the plan to the trustee;
(B) scheduled in a lease of personal property directly to the lessor
for that portion of the obligation that becomes due after the order
for relief, reducing the payments under subparagraph (A) by the
amount so paid and providing the trustee with evidence of such payment,
including the amount and date of payment; and
(C) that provides adequate protection directly to a creditor holding
an allowed claim secured by personal property to the extent the
claim is attributable to the purchase of such property by the debtor
for that portion of the obligation that becomes due after the order
for relief, reducing the payments under subparagraph (A) by the
amount so paid and providing the trustee with evidence of such payment,
including the amount and date of payment.
(2) A payment made under paragraph (1)(A) shall be retained by the
trustee until confirmation or denial of confirmation. If a plan
is confirmed, the trustee shall distribute any such payment in accordance
with the plan as soon as is practicable. If a plan is not confirmed,
the trustee shall return any such payments not previously paid and
not yet due and owing to creditors pursuant to paragraph (3) to
the debtor, after deducting any unpaid claim allowed under section
503 (b).
(3) Subject to section 363, the court may, upon notice and a hearing,
modify, increase, or reduce the payments required under this subsection
pending confirmation of a plan.
(4) Not later than 60 days after the date of filing of a case under
this chapter, a debtor retaining possession of personal property
subject to a lease or securing a claim attributable in whole or
in part to the purchase price of such property shall provide the
lessor or secured creditor reasonable evidence of the maintenance
of any required insurance coverage with respect to the use or ownership
of such property and continue to do so for so long as the debtor
retains possession of such property.
(b) Before or at the time of each payment to creditors under the
plan, there shall be paid
(1) any unpaid claim of the kind specified in section 507 (a)(2)
of this title;
(2) if a standing trustee appointed under section 586 (b) of title
28 is serving in the case, the percentage fee fixed for such standing
trustee under section 586 (e)(1)(B) of title 28; and
(3) if a chapter 7 trustee has been allowed compensation due to
the conversion or dismissal of the debtors prior case pursuant
to section 707 (b), and some portion of that compensation remains
unpaid in a case converted to this chapter or in the case dismissed
under section 707 (b) and refiled under this chapter, the amount
of any such unpaid compensation, which shall be paid monthly
(A) by prorating such amount over the remaining duration of the
plan; and
(B) by monthly payments not to exceed the greater of
(i) $25; or
(ii) the amount payable to unsecured nonpriority creditors, as provided
by the plan, multiplied by 5 percent, and the result divided by
the number of months in the plan.
(c) Except as otherwise provided in the plan or in the order confirming
the plan, the trustee shall make payments to creditors under the
plan.
(d) Notwithstanding any other provision of this title
(1) compensation referred to in subsection (b)(3) is payable and
may be collected by the trustee under that paragraph, even if such
amount has been discharged in a prior case under this title; and
(2) such compensation is payable in a case under this chapter only
to the extent permitted by subsection (b)(3).
1327. Effect of confirmation
(a) The provisions of a confirmed plan bind the debtor and each
creditor, whether or not the claim of such creditor is provided
for by the plan, and whether or not such creditor has objected to,
has accepted, or has rejected the plan.
(b) Except as otherwise provided in the plan or the order confirming
the plan, the confirmation of a plan vests all of the property of
the estate in the debtor.
(c) Except as otherwise provided in the plan or in the order confirming
the plan, the property vesting in the debtor under subsection (b)
of this section is free and clear of any claim or interest of any
creditor provided for by the plan.
1328. Discharge
(a) Subject to subsection (d), as soon as practicable after completion
by the debtor of all payments under the plan, and in the case of
a debtor who is required by a judicial or administrative order,
or by statute, to pay a domestic support obligation, after such
debtor certifies that all amounts payable under such order or such
statute that are due on or before the date of the certification
(including amounts due before the petition was filed, but only to
the extent provided for by the plan) have been paid, unless the
court approves a written waiver of discharge executed by the debtor
after the order for relief under this chapter, the court shall grant
the debtor a discharge of all debts provided for by the plan or
disallowed under section 502 of this title, except any debt
(1) provided for under section 1322 (b)(5);
(2) of the kind specified in section 507 (a)(8)(C) or in paragraph
(1)(B), (1)(C), (2), (3), (4), (5), (8), or (9) of section 523 (a);
(3) for restitution, or a criminal fine, included in a sentence
on the debtors conviction of a crime; or
(4) for restitution, or damages, awarded in a civil action against
the debtor as a result of willful or malicious injury by the debtor
that caused personal injury to an individual or the death of an
individual.
(b) Subject to subsection (d), at any time after the confirmation
of the plan and after notice and a hearing, the court may grant
a discharge to a debtor that has not completed payments under the
plan only if
(1) the debtors failure to complete such payments is due to
circumstances for which the debtor should not justly be held accountable;
(2) the value, as of the effective date of the plan, of property
actually distributed under the plan on account of each allowed unsecured
claim is not less than the amount that would have been paid on such
claim if the estate of the debtor had been liquidated under chapter
7 of this title on such date; and
(3) modification of the plan under section 1329 of this title is
not practicable.
(c) A discharge granted under subsection (b) of this section discharges
the debtor from all unsecured debts provided for by the plan or
disallowed under section 502 of this title, except any debt
(1) provided for under section 1322 (b)(5) of this title; or
(2) of a kind specified in section 523 (a) of this title.
(d) Notwithstanding any other provision of this section, a discharge
granted under this section does not discharge the debtor from any
debt based on an allowed claim filed under section 1305 (a)(2) of
this title if prior approval by the trustee of the debtors
incurring such debt was practicable and was not obtained.
(e) On request of a party in interest before one year after a discharge
under this section is granted, and after notice and a hearing, the
court may revoke such discharge only if
(1) such discharge was obtained by the debtor through fraud; and
(2) the requesting party did not know of such fraud until after
such discharge was granted.
(f) Notwithstanding subsections (a) and (b), the court shall not
grant a discharge of all debts provided for in the plan or disallowed
under section 502, if the debtor has received a discharge
(1) in a case filed under chapter 7, 11, or 12 of this title during
the 4-year period preceding the date of the order for relief under
this chapter, or
(2) in a case filed under chapter 13 of this title during the 2-year
period preceding the date of such order.
(g)
(1) The court shall not grant a discharge under this section to
a debtor unless after filing a petition the debtor has completed
an instructional course concerning personal financial management
described in section 111.
(2) Paragraph (1) shall not apply with respect to a debtor who is
a person described in section 109 (h)(4) or who resides in a district
for which the United States trustee (or the bankruptcy administrator,
if any) determines that the approved instructional courses are not
adequate to service the additional individuals who would otherwise
be required to complete such instructional course by reason of the
requirements of paragraph (1).
(3) The United States trustee (or the bankruptcy administrator,
if any) who makes a determination described in paragraph (2) shall
review such determination not later than 1 year after the date of
such determination, and not less frequently than annually thereafter.
(h) The court may not grant a discharge under this chapter unless
the court after notice and a hearing held not more than 10 days
before the date of the entry of the order granting the discharge
finds that there is no reasonable cause to believe that
(1) section 522 (q)(1) may be applicable to the debtor; and
(2) there is pending any proceeding in which the debtor may be found
guilty of a felony of the kind described in section 522 (q)(1)(A)
or liable for a debt of the kind described in section 522 (q)(1)(B).
1329. Modification of plan
after confirmation
(a) At any time after confirmation of the plan but before the completion
of payments under such plan, the plan may be modified, upon request
of the debtor, the trustee, or the holder of an allowed unsecured
claim, to
(1) increase or reduce the amount of payments on claims of a particular
class provided for by the plan;
(2) extend or reduce the time for such payments;
(3) alter the amount of the distribution to a creditor whose claim
is provided for by the plan to the extent necessary to take account
of any payment of such claim other than under the plan; or
(4) reduce amounts to be paid under the plan by the actual amount
expended by the debtor to purchase health insurance for the debtor
(and for any dependent of the debtor if such dependent does not
otherwise have health insurance coverage) if the debtor documents
the cost of such insurance and demonstrates that
(A) such expenses are reasonable and necessary;
(B)
(i) if the debtor previously paid for health insurance, the amount
is not materially larger than the cost the debtor previously paid
or the cost necessary to maintain the lapsed policy; or
(ii) if the debtor did not have health insurance, the amount is
not materially larger than the reasonable cost that would be incurred
by a debtor who purchases health insurance, who has similar income,
expenses, age, and health status, and who lives in the same geographical
location with the same number of dependents who do not otherwise
have health insurance coverage; and
(C) the amount is not otherwise allowed for purposes of determining
disposable income under section 1325 (b) of this title;
and upon request of any party in interest, files proof that a health
insurance policy was purchased.
(b)
(1) Sections 1322 (a), 1322 (b), and 1323 (c) of this title and
the requirements of section 1325 (a) of this title apply to any
modification under subsection (a) of this section.
(2) The plan as modified becomes the plan unless, after notice and
a hearing, such modification is disapproved.
(c) A plan modified under this section may not provide for payments
over a period that expires after the applicable commitment period
under section 1325 (b)(1)(B) after the time that the first payment
under the original confirmed plan was due, unless the court, for
cause, approves a longer period, but the court may not approve a
period that expires after five years after such time.
1330. Revocation of an order
of confirmation
(a) On request of a party in interest at any time within 180 days
after the date of the entry of an order of confirmation under section
1325 of this title, and after notice and a hearing, the court may
revoke such order if such order was procured by fraud.
(b) If the court revokes an order of confirmation under subsection
(a) of this section, the court shall dispose of the case under section
1307 of this title, unless, within the time fixed by the court,
the debtor proposes and the court confirms a modification of the
plan under section 1329 of this title.
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