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

Page 291 TITLE 11—BANKRUPTCY § 1191 1 So in original. The words ‘‘of this title’’ probably should fol- low ‘‘1129(a)’’. (Added Pub. L. 116–54, § 2(a), Aug. 23, 2019, 133 Stat. 1081.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective 180 days after Aug. 23, 2019, see sec- tion 5 of Pub. L. 116–54, set out as an Effective Date of 2019 Amendment note under section 101 of this title. § 1189. Filing of the plan (a) WHO MAY FILE A PLAN.—Only the debtor may file a plan under this subchapter. (b) DEADLINE.—The debtor shall file a plan not later than 90 days after the order for relief under this chapter, except that the court may extend the period if the need for the extension is attrib- utable to circumstances for which the debtor should not justly be held accountable. (Added Pub. L. 116–54, § 2(a), Aug. 23, 2019, 133 Stat. 1081.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective 180 days after Aug. 23, 2019, see sec- tion 5 of Pub. L. 116–54, set out as an Effective Date of 2019 Amendment note under section 101 of this title. § 1190. Contents of plan A plan filed under this subchapter— (1) shall include— (A) a brief history of the business oper- ations of the debtor; (B) a liquidation analysis; and (C) projections with respect to the ability of the debtor to make payments under the proposed plan of reorganization; (2) shall provide for the submission of all or such portion of the future earnings or other future income of the debtor to the supervision and control of the trustee as is necessary for the execution of the plan; and (3) notwithstanding section 1123(b)(5) of this title, may modify the rights of the holder of a claim secured only by a security interest in real property that is the principal residence of the debtor if the new value received in connec- tion with the granting of the security interest was— (A) not used primarily to acquire the real property; and (B) used primarily in connection with the small business of the debtor. (Added Pub. L. 116–54, § 2(a), Aug. 23, 2019, 133 Stat. 1082.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective 180 days after Aug. 23, 2019, see sec- tion 5 of Pub. L. 116–54, set out as an Effective Date of 2019 Amendment note under section 101 of this title. § 1191. Confirmation of plan (a) TERMS.—The court shall confirm a plan under this subchapter only if all of the require- ments of section 1129(a), other than paragraph (15) of that section, of this title 1 are met. (b) EXCEPTION.—Notwithstanding section 510(a) of this title, if all of the applicable re- quirements 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 re- quest of the debtor, shall confirm the plan not- withstanding the requirements of such para- graphs if the plan does not discriminate un- fairly, 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 re- quirements: (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 pro- jected 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 ap- plied to make payments under the plan; or (B) the value of the property to be distrib- uted 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 non- exempt 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 ex- pended— (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 nec- essary 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 sub- section (b) of this section. (Added Pub. L. 116–54, § 2(a), Aug. 23, 2019, 133 Stat. 1082; amended Pub. L. 116–260, div. N, title III, § 320(c), (f)(2)(A)(iii), Dec. 27, 2020, 134 Stat. 2016, 2017; Pub. L. 117–151, § 2(f), June 21, 2022, 136 Stat. 1299.) Page 292 TITLE 11—BANKRUPTCY § 1192 Editorial Notes AMENDMENTS 2022—Subsec. (c)(3). Pub. L. 117–151 added par. (3) and struck out former par. (3) which read as follows: ‘‘(3)(A)(i) The debtor will be able to make all pay- ments 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—Subsec. (f). Pub. L. 116–260, § 320(f)(2)(A)(iii), con- tingent on its addition by Pub. L. 116–260, § 320(c), struck out subsec. (f). Text read as follows: ‘‘Notwith- standing section 1129(a)(9)(A) of this title and sub- section (e) of this section, a plan that provides for pay- ment 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. 116–260, § 320(c), added subsec. (f). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2022 AMENDMENT Amendment by Pub. L. 117–151 applicable with re- spect to any case that is commenced under this title on or after Mar. 27, 2020, and with respect to a case that was commenced on or after Mar. 27, 2020, and before June 21, 2022, that is pending on June 21, 2022, see sec- tion 2(h)(2) of Pub. L. 117–151, set out as an Effective Date of 2022 Amendment; Retroactive Application note under section 101 of this title. EFFECTIVE AND TERMINATION DATES OF 2020 AMENDMENT Amendment by section 320(c) of div. N of Pub. L. 116–260 effective on the date on which the Adminis- trator of the Small Business Administration submits to the Director of the Executive Office for United States Trustees a written determination relating to loan eligi- bility under pars. (36) and (37) of section 636(a) of Title 15, Commerce and Trade, and applicable to any case pending on or commenced on or after such date, and amendment by section 320(f)(2)(A)(iii) of div. N of Pub. L. 116–260, relating to repeal of such amendment if it became effective, effective two years after Dec. 27, 2020, see section 320(f) of Pub. L. 116–260, set out as a note under section 364 of this title. [Pursuant to 15 U.S.C. 636(a)(36)(A)(iii), the ‘‘cov- ered period’’ for loans under the Paycheck Protection Program ended on June 30, 2021.] EFFECTIVE DATE Section effective 180 days after Aug. 23, 2019, see sec- tion 5 of Pub. L. 116–54, set out as an Effective Date of 2019 Amendment note under section 101 of this title. § 1192. Discharge If the plan of the debtor is confirmed under section 1191(b) of this title, as soon as prac- ticable after completion by the debtor of all payments due within the first 3 years of the plan, or such longer period not to exceed 5 years as the court may fix, unless the court approves a written waiver of discharge executed by the debtor after the order for relief under this chap- ter, the court shall grant the debtor a discharge of all debts provided in section 1141(d)(1)(A) of this title, and all other debts allowed under sec- tion 503 of this title and provided for in the plan, except any debt— (1) on which the last payment is due after the first 3 years of the plan, or such other time not to exceed 5 years fixed by the court; or (2) of the kind specified in section 523(a) of this title. (Added Pub. L. 116–54, § 2(a), Aug. 23, 2019, 133 Stat. 1083.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective 180 days after Aug. 23, 2019, see sec- tion 5 of Pub. L. 116–54, set out as an Effective Date of 2019 Amendment note under section 101 of this title. § 1193. Modification of plan (a) MODIFICATION BEFORE CONFIRMATION.—The debtor may modify a plan at any time before confirmation, but may not modify the plan so that the plan as modified fails to meet the re- quirements of sections 1122 and 1123 of this title, with the exception of subsection (a)(8) of such section 1123. After the modification is filed with the court, the plan as modified becomes the plan. (b) MODIFICATION AFTER CONFIRMATION.—If a plan has been confirmed under section 1191(a) of this title, the debtor may modify the plan at any time after confirmation of the plan and be- fore substantial consummation of the plan, but may not modify the plan so that the plan as modified fails to meet the requirements of sec- tions 1122 and 1123 of this title, with the excep- tion of subsection (a)(8) of such section 1123. The plan, as modified under this subsection, becomes the plan only if circumstances warrant the modification and the court, after notice and a hearing, confirms the plan as modified under section 1191(a) of this title. (c) CERTAIN OTHER MODIFICATIONS.—If a plan has been confirmed under section 1191(b) of this title, the debtor may modify the plan at any time within 3 years, or such longer time not to exceed 5 years, as fixed by the court, but may not modify the plan so that the plan as modified fails to meet the requirements of section 1191(b) of this title. The plan as modified under this subsection becomes the plan only if cir- cumstances warrant such modification and the court, after notice and a hearing, confirms such plan, as modified, under section 1191(b) of this title. (d) HOLDERS OF A CLAIM OR INTEREST.—If a plan has been confirmed under section 1191(a) of this title, any holder of a claim or interest that has accepted or rejected the plan is deemed to have accepted or rejected, as the case may be, the plan as modified, unless, within the time fixed by the court, such holder changes the pre- vious acceptance or rejection of the holder. (Added Pub. L. 116–54, § 2(a), Aug. 23, 2019, 133 Stat. 1083.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective 180 days after Aug. 23, 2019, see sec- tion 5 of Pub. L. 116–54, set out as an Effective Date of 2019 Amendment note under section 101 of this title. § 1194. Payments (a) RETENTION AND DISTRIBUTION BY TRUST- EE.—Payments and funds received by the trustee