11 U.S.C. § 1191 | Confirmation of plan

(a)

Terms .—

1 So in original. The words “of this title” probably should follow “1129(a)”.

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 .—

section 510(a) of this title section 1129(a) of this titleNotwithstanding , if all of the applicable requirements of , 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)

section 1129(b)(2)(A) of this title With respect to a class of secured claims, the plan meets the requirements of .

(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 .—

section 1129(a)(9)(A) of this title section 507(a) of this titleNotwithstanding , a plan that provides for the payment through the plan of a claim of a kind specified in paragraph (2) or (3) of may be confirmed under subsection (b) of this section.

Pub. L. 116–54, § 2(a)Aug. 23, 2019133 Stat. 1082 Pub. L. 116–260, div. N, title III, § 320(c)Dec. 27, 2020134 Stat. 2016 Pub. L. 117–151, § 2(f)June 21, 2022136 Stat. 1299 (Added , , ; amended , (f)(2)(A)(iii), , , 2017; , , .)

Editorial Notes

Amendments

Pub. L. 117–1512022—Subsec. (c)(3). added par. (3) and struck out former par. (3) which read as follows:

“(3)(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.”

Pub. L. 116–260, § 320(f)(2)(A)(iii)Pub. L. 116–260, § 320(c)section 1129(a)(9)(A) of this title section 503(b)(10) of this title2020—Subsec. (f). , contingent on its addition by , struck out subsec. (f). Text read as follows: “Notwithstanding and subsection (e) of this section, a plan that provides for payment of a claim of a kind specified in 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. 116–260, § 320(c), added subsec. (f).

Statutory Notes and Related Subsidiaries

Effective Date of 2022 Amendment

Pub. L. 117–151Mar. 27, 2020Mar. 27, 2020June 21, 2022June 21, 2022section 2(h)(2) of Pub. L. 117–151 section 101 of this titleAmendment by applicable with respect to any case that is commenced under this title on or after , and with respect to a case that was commenced on or after , and before , that is pending on , see , set out as an Effective Date of 2022 Amendment; Retroactive Application note under .

Effective and Termination Dates of 2020 Amendment

section 320(c) of div. N of Pub. L. 116–260 section 636(a) of Title 15 section 320(f)(2)(A)(iii) of div. N of Pub. L. 116–260Dec. 27, 2020section 320(f) of Pub. L. 116–260 section 364 of this titleAmendment by 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 , Commerce and Trade, and applicable to any case pending on or commenced on or after such date, and amendment by , relating to repeal of such amendment if it became effective, effective two years after , see , set out as a note under .

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

Effective Date

Aug. 23, 2019section 5 of Pub. L. 116–54 section 101 of this titleSection effective 180 days after , see , set out as an Effective Date of 2019 Amendment note under .