Cite as: Keith M. Lundin, Lundin On Chapter 13, § 70.1, at ¶ ____, LundinOnChapter13.com (last visited __________).
Using the mandatory and permissive provisions of a plan found in 11 U.S.C. § 1322 and the tests for confirmation in 11 U.S.C. § 1325, this Part 4 focuses on the technology of designing and confirming Chapter 13 plans. The permissible treatments of priority, secured and unsecured claim holders are discussed. Each of the major criteria for confirmation in § 1325 is discussed from the debtors’ and the creditors’ perspectives, including the best-interests-of-creditors test, the disposable income test, “smoothdown,” valuation, interest rates, good faith, feasibility and plan duration. Changes to plan and confirmation provisions made by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA)1 are referenced here but discussed in detail in Part 9. This Part and the Appendixes detail the mathematics of calculating payments to creditors. The treatment of leases and executory contracts is considered, as are special plan and confirmation requirements for debtors engaged in business. Special attention is given to home mortgages. Procedural considerations are covered such as the timing and content of the hearing on confirmation, objections to confirmation and burden of proof at a confirmation hearing. Remedies are considered whether confirmation is granted or denied. The effects of confirmation are discussed in Part 5.
1 Pub. L. No. 109-8, 119 Stat. 23 (2005).