CHAPTER 4 CHAPTER 13 PLAN CONFIRMATION AND DISCHARGE

• Jurisdiction: United States

CHAPTER 4 - CHAPTER 13 PLAN CONFIRMATION AND DISCHARGE

A chapter 13 case has two major goals that must be achieved. First, to confirm the case. Second, to obtain the discharge. Chapter 4 discusses particular issues that arise in getting the case confirmed and what stops a debtor from obtaining his discharge.

When a debtor has two loans that are cross-collateralized, he may want to confirm a plan that includes a provision for a partial surrender, where the debtor will retain one piece of property and surrender the other. This issue arises with credit unions that have cross-collateralized multiple loans. The courts are split on whether a debtor may confirm a plan with a partial surrender.

Another issue debtors encounter is whether they may confirm a "tiered" plan under § 1325, where payments to creditors will begin at different times. Some courts have allowed tired plans, as long as the secured claims will be paid in full. Other courts do not allow a tiered plan ignores the "abuse prevention" aspect of BAPCPA by impermissibly favoring the administrative claim of debtor's counsel to the disadvantage of secured creditors.

Finally, can a case be confirmed if it does not commit Social Security benefits to the plan? While Social Security benefits are specifically excluded from disposable income and are...