What Is Section 1192?
Section 1192 defines the cramdown requirements for Subchapter V. When a plan cannot be confirmed consensually because impaired classes reject it, the court may confirm under 1191(b) if Section 1192 requirements are met.
The central requirement: commit all projected disposable income for 3-5 years.
Projected Disposable Income
Income not reasonably necessary for:
- Maintenance or support of debtor/dependents
- Continuation, preservation, or operation of the business
Key difference from Chapter 13: Uses actual projected income and reasonable expenses - not the mechanical IRS standards of the bankruptcy means test guide.
Fair and Equitable Requirement
The plan must not discriminate unfairly and must meet the disposable income test.
No absolute priority rule: The debtor may retain equity even if unsecured creditors are not paid in full.
Discharge Comparison
| Path | When | Scope |
|---|---|---|
| 1191(a) Consensual | Upon confirmation | Broad (standard Ch. 11) |
| 1191(b)/1192 Cramdown | After all payments | Narrower - 523(a) exceptions apply |
Important: Under cramdown, debts for fraud, willful injury, domestic support, taxes, and student loans survive discharge.
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Related Resources
section1191.org - Consensual confirmation
Section 523(a) nondischargeable debts - Exceptions to discharge
1328f.org - Bankruptcy research platform