CHAPTER 12 ADJUSTMENT OF DEBTS OF A FAMILY FARMER
WITH REGULAR ANNUAL INCOME
Sub Chapter II The Plan
Sec. 1225. Confirmation of plan
(a) Except as provided in subsection (b), the court shall confirm a
(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
(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
(A) the holder of such claim has accepted the plan;
(B)(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; and
(6) the debtor will be able to make all payments under the plan
and to comply with the plan.
(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;
(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.
(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
(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.
(Added and amended Pub. L. 99-554, title II, Sec. 255, title III,
Sec. 302(f), Oct. 27, 1986, 100 Stat. 3110, 3124; Pub. L. 105-277, div.
C, title I, Sec. 149(a), Oct. 21, 1998, 112 Stat. 2681-610.)
Termination of Section
For termination of reenactment of this section by section 149(a)
of Pub. L. 105-277, see Repeal, Reenactment, and Termination of
Chapter note set out under section 1201 of this title.
Section repealed effective Oct. 1, 1998, by Pub. L. 99-554, title
III, Sec. 302(f), Oct. 27, 1986, 100 Stat. 3124, as amended by Pub. L.
103-65, Sec. 1, Aug. 6, 1993, 107 Stat. 311. Section, as in effect on
Sept. 30, 1998, reenacted by Pub. L. 105-277, div. C, title I,
Sec. 149(a), Oct. 21, 1998, 112 Stat. 2681-610, for the period beginning
on Oct. 1, 1998, and ending on Apr. 1, 1999. See Repeal, Reenactment,
and Termination of Chapter note set out under section 1201 of this
Section Referred to in Other Sections
This section is referred to in sections 347, 1208, 1222, 1229, 1230,
1231 of this title.