Ideally, a liquidation analysis should be attached to the proposed plan. Disposable income . Certain other confirmation requirements must be met that depend on the type of claim presented. Unsecured claim holders must receive, upon their objection, the debtor's disposable income over the three-year term of the plan. As stated above, these required payments of disposable income are in addition to the minimum payments required under the best interest of creditors test.
Several facts are demonstrative.
Second, the plan does not recognize that both the IRAs and the entire monthly annuity payments may constitute disposable income. As discussed in Koch , a debtor's income in a Chapter 13 case includes both exempt and non exempt sources. Though these exempt funds were obtained pre-petition, that may not exclude them from disposable income. Debtor's plan also has not been proposed in good faith because his current Schedule I is incomplete. Though an amended Schedule I was offered as evidence, a verified copy has not yet been filed and noticed in compliance with F.R.Bankr.