11 U.S.C. § 1225

Confirmation of plan

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(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 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;(6) the debtor will be able to make all payments under the plan and to comply with the plan; and(7) 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.(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; or(C) the value of the property to be distributed under the plan in the 3-year period, or such longer period as the court may approve under section 1222(c), beginning on the date that the first distribution is due under the plan is not less than the debtor’s projected disposable income for such period.(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 for a domestic support obligation that first becomes payable after the date of the filing of the petition; 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, § 255, title III, § 302(f), Oct. 27, 1986, 100 Stat. 3110, 3124; Pub. L. 103–65, § 1, Aug. 6, 1993, 107 Stat. 311; Pub. L. 105–277, div. C, title I, § 149(a), Oct. 21, 1998, 112 Stat. 2681–610; Pub. L. 106–5, § 1(1), (2), Mar. 30, 1999, 113 Stat. 9; Pub. L. 106–70, § 1, Oct. 9, 1999, 113 Stat. 1031; Pub. L. 107–8, § 1, May 11, 2001, 115 Stat. 10; Pub. L. 107–17, § 1, June 26, 2001, 115 Stat. 151; Pub. L. 107–170, § 1, May 7, 2002, 116 Stat. 133; Pub. L. 107–171, title X, § 10814(a), May 13, 2002, 116 Stat. 532; Pub. L. 107–377, § 2(a), Dec. 19, 2002, 116 Stat. 3115; Pub. L. 108–73, § 2(a), Aug. 15, 2003, 117 Stat. 891; Pub. L. 108–369, § 2(a), Oct. 25, 2004, 118 Stat. 1749; Pub. L. 109–8, title II, §§ 213(5), 218, title X, §§ 1001(a)(1), (c), 1006(a), Apr. 20, 2005, 119 Stat. 52, 55, 185–187; Pub. L. 116–260, div. N, title III, § 320(d), (f)(2)(A)(iv), Dec. 27, 2020, 134 Stat. 2016, 2017.)Editorial NotesCodification

For repeal of section effective Oct. 1, 1998, and subsequent reenactment of section, see note set out preceding section 1201 of this title.

Amendments

2020—Subsec. (d). Pub. L. 116–260, § 320(f)(2)(A)(iv), contingent on its addition by Pub. L. 116–260, § 320(d), struck out subsec. (d) which read as follows: “Notwithstanding section 1222(a)(2) of this title and subsection (b)(1) of this section, a plan that provides for payment of a claim of a kind specified in section 503(b)(10) of this title may be confirmed if the plan proposes to make payments on account of such claim when due under the terms of the loan giving rise to such claim.”

Pub. L. 116–260, § 320(d), added subsec. (d).

2005—Subsec. (a)(7). Pub. L. 109–8, § 213(5), added par. (7).

Subsec. (b)(1)(C). Pub. L. 109–8, § 1006(a), added subpar. (C).

Subsec. (b)(2)(A). Pub. L. 109–8, § 218, inserted “or for a domestic support obligation that first becomes payable after the date of the filing of the petition” after “dependent of the debtor”.

Statutory Notes and Related SubsidiariesEffective and Termination Dates of 2020 Amendment

Amendment by section 320(d) of div. N of Pub. L. 116–260 effective on the date on which the Administrator of the Small Business Administration submits to the Director of the Executive Office for United States Trustees a written determination relating to loan eligibility under pars. (36) and (37) of section 636(a) of Title 15, Commerce and Trade, and applicable to any case pending on or commenced on or after such date, and amendment by section 320(f)(2)(A)(iv) of div. N of Pub. L. 116–260, relating to repeal of such amendment if it became effective, effective two years after Dec. 27, 2020, see section 320(f) of Pub. L. 116–260, set out as a note under section 364 of this title.

[Pursuant to 15 U.S.C. 636(a)(36)(A)(iii), the “covered period” for loans under the Paycheck Protection Program ended on June 30, 2021.]

Effective Date of 2005 Amendment

Amendment by sections 213(5), 218, and 1006(a) of Pub. L. 109–8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of this title.

Effective Dates

Permanent reenactment of section effective July 1, 2005, see section 1001(a)(2) of Pub. L. 109–8, set out as a Repeal, Reenactment, and Termination of Chapter note under section 1201 of this title. For effective dates of section and amendments extending periods for which section was reenacted prior to permanent reenactment, see Effective Date and Effective Date of 1999, 2001, 2002, 2003, and 2004 Amendment notes set out under section 1201 of this title.

Notes of Decisions

Cited in 332 cases (20 in the last 5 years), 1939–2026 · leading case: In Re Shannon, 100 B.R. 913 (S.D. Ohio 1989).

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In Re Shannon, 100 B.R. 913 (S.D. Ohio 1989). · cites it 14× “Specifically, the Court would discuss the proper method for determining discount rates under 11 U.S.C. § 1225 (a)(5)(B)(ii) (Supp. IV 1986).”

Yarnall v. Rowley (In Re Rowley), 143 B.R. 547 (Bankr. D.S.D. 1992). · cites it 24× “The matter before the Court is a Complaint to Determine Debtors[’] Obligation to Pay Net Disposable Income Pursuant to 11 U.S.C. § 1225 (b). Since 1987, Debtors have made payments according to a confirmed Chapter 12 plan of reorganization and are currently seeking a discharge…”

United States v. Krause (In Re Krause), 261 B.R. 218 (8th Cir. BAP 2001). · cites it 6× “Plan Confirmation Pursuant to 11 U.S.C. § 1225 (a)(5) A chapter 12 debtor has the burden of proving that his bankruptcy plan meets all confirmation requirements.”

In Re Sharon E. Kerwin, Debtor, First Brandon Nat'l Bank v. Sharon E. Kerwin, Jan M. Sensenich, Tr., 996 F.2d 552 (1st Cir. 1993). · cites it 7× “The bank asserts that 11 U.S.C. § 1225 (a)(5)(B)(i) requires the lien to be maintained on the remaining property or collateral retained by the debtor, and it further asserts that the bankruptcy court erred in valuing the property that was transferred to it.”

In re Terry Props., LLC, 569 B.R. 76 (Bankr. W.D. Va. 2017). · cites it 12× “10 Finally, the plan seeks to impose a third-party injunction to prevent the two state court lawsuits against the co-borrowers from going forward.”

In Re Foertsch, 167 B.R. 555 (Bankr. D.N.D. 1994). · cites it 5× “11 U.S.C. § 1225 (a)(5)(B). This subsection allows a farm debtor to “cram down” a plan of reorganization onto the holder of an allowed secured claim in situations in which the creditor refuses to accept the proposed plan, provided that, among other things, the value of the…”

In Re Kloberdanz, 83 B.R. 767 (Bankr.D. Colo. 1988). · cites it 7× “Debtors have undervalued the real property and personalty securing the Bank's claim and have used an unreasonably low rate of capitalization for the payout, all of which results in the secured creditor not being paid the full value of its allowed claim as required by 11 U.S.C. §…”

In Re Harper, 157 B.R. 858 (Bankr. E.D. Ark. 1993). · cites it 14× “The debtor’s amended plan treats Farm Credit’s claim as follows: The following secured creditors will retain the liens securing their claims and be paid the present value of their collateral or the amount of their claims, whichever is less, pursuant to 11 U.S.C. § 1225 (a)(5)(B)…”

In Re Elmer FOBIAN & Elsie Fobian, Debtors. Elmer FOBIAN & Elsie Fobian, Appellants, v. W. FARM CREDIT BANK, Appellee, 951 F.2d 1149 (9th Cir. 1991). · cites it 3× “In support of this argument, the Fobians invoke Section 1225(a)(5), which provides: (a) Except as provided in subsection (b), the court shall confirm a plan if— (5) with respect to each allowed secured claim provided for by the plan— (C) the debtor surrenders the property…”

In re Fuelling, 601 B.R. 665 (Bankr. D. Iowa 2019). · cites it 6× “Creditors Freedom Bank and ARM object to Debtors' Plan, arguing that it impermissibly treats secured property under 11 U.S.C. § 1225 (a)(5), is not feasible, and was not proposed in good faith.”

In Re Erickson P'ship, 77 B.R. 738 (Bankr. D.S.D. 1987). · cites it 6× “allowed secured claim provided for by the plan— [[Image here]] (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…”

Bank of Am. Nat'l Trust & Sav. Ass'n v. 203 North LaSalle Street P'ship, 526 U.S. 434 (1999). · cites it 2× “, 11 U. S. C. § 1225 (b)(1)(B) (allowing a debtor to retain nondisposable income); § 1325(b)(1)(B) (same).”

Show all 332 citing cases →

— 11 U.S.C. § 1225(6) — 1 case

In re Lehigh Valley R., 34 F. Supp. 750 (E.D. Pa. 1940).

— 11 U.S.C. § 1225(a)(3) — 1 case

Euerle Farms, Inc. v. State Bank in Eden Valley (In re Euerle Farms, Inc.), 861 F.2d 1089 (8th Cir. 1988).

— 11 U.S.C. § 1225(a)(4) — 1 case

In Re Perdue, 95 B.R. 475 (Bankr. W.D. Ky. 1988).

— 11 U.S.C. § 1225(a)(5) — 2 cases

In re Terry Props., LLC, 569 B.R. 76 (Bankr. W.D. Va. 2017). “10 Finally, the plan seeks to impose a third-party injunction to prevent the two state court lawsuits against the co-borrowers from going forward.”

Albaugh v. Terrell, 93 B.R. 115 (E.D. Mich. 1988).

— 11 U.S.C. § 1225(a)(6) — 1 case

In Re Elk Creek Salers, Ltd., 286 B.R. 387 (Bankr. W.D. Mo. 2002).

Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.