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To Chapter 13 to become effective, all debtors must file a plan and
receive confirmation from the Court. Without eventual confirmation, the
case must be dismissed or converted to another chapter. The time required
for confirmation is subjective, that is, most plans are recommended by the
Chapter 13 Trustee before Court approval, and even then, the Court
usually questions debtors under oath and may require amendments before
granting confirmation. Chapter 13 bankruptcy rules are complex, and
even more so after the effective date of reform amendments.
All disposable income must be paid to the trustee. There is nothing
new about this rule per se, but the operative part of the formula used
to calculate disposable income has changed dramatically. In the past,
each debtor's circumstance was considered individually when assessing
reasonable living expenses. Now, after reform, one national schedule for
expenses sets a single standard of living for all people across the
country without regard to needs or circumstances. (i.e. disabilities,
incapacity, medical or health issues, or even transportation needs to
and from work).
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