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Best Efforts of Debtor: Where an objection to confirmation is filed by an unsecured creditor or the Chapter 13 trustee, the court may not confirm the plan unless: (i) the plan proposes to pay the objecting creditor the total amount, although (according to Collier) not necessarily the present value, of his allowed claim (or, if the objection is made by the trustee, the plan proposes to fully satisfy all (he allowed unsecured claims), or (ii) all of the debtor's expected disposable income for three years from the due date of the first payment under the plan will be used to make payments under the plan.
a. Disposable income: The Code defines disposable income as that portion of the debtor's income which is "not reasonably necessary" to maintain or support the debtor or her dependents, and (in applicable cases) to pay the expenses required for the continuation, operation, and preservation of the business of a debtor engaged in business. (I) Example: Debtor files a Chapter 13 plan proposing to repay unsecured creditors fourteen percent of their claims. Debtor's budget includes excessive expenses for Debtor's children's tuition at college and private secondary school and excessive expenses for food and housing. The proposed payments under the plan total $132 per month. An unsecured creditor objects lo confirmation, and the court finds that the debtor's disposable income is $510 per month. Since the creditor will not receive the total amount of his claim and not all of debtor's disposable income is being used to make payments, confirmation will be denied
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