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U.S. Code, 11 U.S.C. § 1191. Confirmation of Plan
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Codified Statutes
  1. U.S. Code
  2. TITLE 11 — BANKRUPTCY
  3. CHAPTER 11 — REORGANIZATION(§§ 1101 to 1195)
  4. SUBCHAPTER V — SMALL BUSINESS DEBTOR REORGANIZATION(§§ 1181 to 1195)

11 U.S.C. § 1191. Confirmation of Plan

(a) Terms —
The court shall confirm a plan under this subchapter only if all of the requirements of section 1129(a), other than paragraph (15) of that section, of this title are met.
(b) Exception —
Notwithstanding section 510(a) of this title, if all of the applicable requirements of section 1129(a) of this title, other than paragraphs (8), (10), and (15) of that section, are met with respect to a plan, the court, on request of the debtor, shall confirm the plan notwithstanding the requirements of such paragraphs if the plan does not discriminate unfairly, and is fair and equitable, with respect to each class of claims or interests that is impaired under, and has not accepted, the plan.
(c) Rule of construction —
For purposes of this section, the condition that a plan be fair and equitable with respect to each class of claims or interests includes the following requirements:
(1)
With respect to a class of secured claims, the plan meets the requirements of section 1129(b)(2)(A) of this title.
(2)
As of the effective date of the plan-
(A)
the plan provides that all of the projected disposable income of the debtor to be received in the 3-year period, or such longer period not to exceed 5 years as the court may fix, beginning on the date that the first payment is due under the plan will be applied to make payments under the plan; or
(B)
the value of the property to be distributed under the plan in the 3-year period, or such longer period not to exceed 5 years as the court may fix, beginning on the date on which the first distribution is due under the plan is not less than the projected disposable income of the debtor.
(3)
(A)
The debtor will be able to make all payments under the plan; or
(B)
(i)
there is a reasonable likelihood that the debtor will be able to make all payments under the plan; and
(ii)
the plan provides appropriate remedies, which may include the liquidation of nonexempt assets, to protect the holders of claims or interests in the event that the payments are not made.
(d) Disposable income —
For purposes of this section, the term "disposable income" means the income that is received by the debtor and that is not reasonably necessary to be expended-
(1)
for-
(A)
the maintenance or support of the debtor or a dependent of the debtor; or
(B)
a domestic support obligation that first becomes payable after the date of the filing of the petition; or
(2)
for the payment of expenditures necessary for the continuation, preservation, or operation of the business of the debtor.
(e) Special rule —
Notwithstanding section 1129(a)(9)(A) of this title, a plan that provides for the payment through the plan of a claim of a kind specified in paragraph (2) or (3) of section 507(a) of this title may be confirmed under subsection (b) of this section.
(f) Special provision related to COVID-19 pandemic —
Notwithstanding section 1129(a)(9)(A) of this title and subsection (e) 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 under subsection (b) of this section 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. 116-54, sec. 2(a), Aug. 23, 2019 133 Stat. 1082 . Pub. L. 116-260, title III, Secs. 320(c), 320(f)(2)(A)(iii), Dec. 27, 2020, 134 Stat. 2016, 2017. Pub. L. 117-151, Sec. 2(f), Jun. 21, 2022, 136 Stat. 1299.

Amendments

2022-Pub. L. 117-151Sec. 2(f), amended Par. (c)(3) generally. Prior to amendment, text read as follows:
(A)
(i)
The debtor will be able to make all payments under the plan; or
(ii)
there is a reasonable likelihood that the debtor will be able to make all payments under the plan; and
"(B)
the plan provides appropriate remedies, which may include the liquidation of nonexempt assets, to protect the holders of claims or interests in the event that the payments are not made. "
2020-Pub. L. 116-260Sec. 320(c), added subsection (f).

Effective Date of 2019 Amendment

Pub. L. 116-54, sec. 5, Aug. 23, 2019 133 Stat. 1082, provided that: Section effective 180 days after Aug. 23, 2019, see section 5 of Pub. L. 116-54, set out as an Effective Date of 2019 Amendment note under section 101 of this title.

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