Good Faith -- 1325(a)(3)
The plan must be proposed in good faith. Courts consider the totality of circumstances: Is the debtor making a genuine effort to repay? Is the plan an honest attempt to deal with creditors? Manipulating income, hiding assets, or proposing an unrealistic plan can result in denial.
Best Interest Test -- 1325(a)(4)
Unsecured creditors must receive at least as much as they would receive in a Chapter 7 liquidation. Calculate the value of non-exempt assets -- that is the minimum unsecured creditors must receive through the plan.
Disposable Income -- 1325(b)
If the trustee or an unsecured creditor objects, the plan must commit all projected disposable income for the applicable commitment period. Below-median debtors: 3 years. Above-median debtors: 5 years.
Disposable income = current monthly income minus reasonably necessary expenses. The means test form (Form 122C) calculates this.
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