Karen has filed for bankruptcy. Who has the authority to confirm or reject a plan of payment, and what factors will be considered when deciding whether to approve a repayment plan under Chapter 13?
The bankruptcy court has the sole authority to confirm or reject the plan of payment. Creditors have no voting rights. However, the court will ensure the following:
the plan is feasible and the bankrupt will be able to make the promised payments;
the plan does not extend beyond three years without good reason and no event lasts longer than five years;
if the plan does not provide for the debtor to pay off creditors in full, then all of the debtor's disposable income for the next five years must go to creditors; and
the debtor is acting in good faith, making a reasonable effort to pay obligations.
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