3.10.a The Bad Faith Plan

• Jurisdiction: United States

a. In general

The Bankruptcy Code places debt limits for eligibility to file Chapter 13. An objection to confirmation of a Chapter 13 plan on grounds that the debts exceed the limits may be brought by a creditor, or may be raised by the Court sua sponte. In re Berenato, 226 B.R. 819, 823 (Bankr. E.D. Pa. 1998); In re Bourque, 153 B.R. 87, 95 (Bankr. D. Mass. 1993).

Congressional intent was to make Chap-ter 13 available to sole proprietors (but not partnerships or corporations) who were relatively small, and not available to a large business, even if a sole proprietorship. However, there is scant...