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 means test.
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.
Related Resources
section1191.org -- Consensual confirmation
523a.org -- Exceptions to discharge
1328f.org -- Bankruptcy research platform