Q

What is required for court approval of the chapter 13 plan?

A

The Bankruptcy Court may confirm a chapter 13 plan if: (1) the plan complies with the legal requirements of chapter 13; (2) all required fees, charges, and deposits have been paid; (3) all priority claims will be paid in full under the plan; (4) the plan was proposed in good faith; (5) each unsecured creditor will receive under the plan at least as much as it would have received had the debtor filed under chapter 7; (6) it appears that the debtor will be able to make the required payments and comply with the plan; and (7) each secured creditor receives no less than the value of its collateral (by accepting the plan, by being paid that value, by surrender of the collateral, or by being paid pursuant to the original terms outside of the plan).