11 U.S.C. § 1325 — Confirmation of plan

(a) Required confirmation. Unless (b) applies, the court must confirm the plan if: (1) it follows this chapter and other applicable title provisions; (2) required fees and charges due before confirmation have been paid; (3) it was proposed in good faith and legally; (4) each allowed unsecured claim will receive at least what it would receive if the debtor’s estate were liquidated under chapter 7 on the plan’s effective date; (5) for each allowed secured claim, the holder accepted the plan, or the plan preserves the lien until the debt is paid or discharge under section 1328 and preserves it after dismissal or conversion to the extent nonbankruptcy law recognizes it, distributes property worth at least the allowed claim, and uses equal monthly payments that adequately protect a personal-property secured claim, or the debtor surrenders the collateral; (6) the debtor can make all payments and comply; (7) filing was in good faith; (8) the debtor paid domestic-support amounts that became due after filing when required by order or law; and (9) the debtor filed all required Federal, State, and local returns under section 1308. Section 506 does not apply to certain purchase-money claims for a personal-use motor vehicle incurred within 910 days before filing, or other collateral acquired within 1 year before filing. (b) Objection by trustee or unsecured creditor. (1) If the trustee or an allowed unsecured-claim holder objects, the court may not approve the plan unless the plan will distribute at least the full claim’s value or will apply all projected disposable income received during the applicable commitment period to unsecured creditors. (2) “Disposable income” means current monthly income minus amounts reasonably necessary for the debtor’s or a dependent’s support, qualifying post-filing domestic support, qualifying charitable contributions up to 15 percent of gross income, and, for a debtor in business, necessary business continuation and operating expenses. Child support, foster-care, and dependent-child disability payments are excluded to the extent reasonably necessary for that child. (3) Except for charitable contributions, necessary amounts are determined under section 707(b)(2)(A) and (B) when annualized current monthly income exceeds the applicable State median threshold: the one-person threshold for one earner; the highest threshold for a family of the same or fewer size for households of 2 to 4; or the four-person threshold plus $525 per month for each person over 4 for larger households. (4) The applicable commitment period is 3 years, or at least 5 years when the debtor and spouse’s annualized income meets those same household thresholds. It may be shorter only if the plan pays all allowed unsecured claims in full during the shorter period. (c) Income paid to trustee. After confirmation, the court may order any entity paying the debtor income to pay all or part of that income to the trustee.