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Chapter 13 plans

Feasibility

The requirement that, for a Chapter 13 plan to be confirmed, the debtor will be able to make all payments under the plan and to comply with it. 1

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How it works

The judge decides it at the confirmation hearing, which must be held no later than 45 days after the meeting of creditors. Creditors may object to confirmation. 1

Feasibility looks at the whole length of the plan. Chapter 13 plans usually last three to five years, and payments to the trustee must start within 30 days after filing, even if the court has not yet approved the plan. 2

Falling behind has consequences. If the debtor fails to make the payments due under the confirmed plan, the court may dismiss the case or convert it to Chapter 7. 2

There is some room to adjust. If a change in circumstances affects the debtor's ability to pay, the plan may be modified before or after confirmation. Paying through payroll deductions makes it more likely that payments are made on time. 2

Common questions

What if the court does not confirm my plan?

The debtor may file a modified plan. 2

Who receives the plan payments?

A Chapter 13 trustee, who pays creditors and also reviews the case. 2

Sources

  1. 11 U.S. Code § 1325(a)(6) (Cornell LII)
  2. Chapter 13 - Bankruptcy Basics (uscourts.gov)

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