When the Plan is Not Feasible

The word “feasible” is defined as “Capable of being accomplished or brought about.” Applied to Chapter 13 bankruptcy, it simply means that the creditors and/or the trustee of the case do not believe that the consumer’s proposed repayment plan is going to be accomplished or that the consumer is going to bail out on it before its official end.

The two main arguments that they can throw the consumer’s way are:

1.) That the consumer’s income, as shown in his/her Form 22, is not enough to meet the repayment requirements of his/her plan. For example the consumer is in a 5 year repayment plan, but based on his/her income he/she would not be able to make or sustain the monthly minimum payments. The plan then cannot be considered feasible.

What is Form 22?

It is the form used to calculate the consumer’s Current Monthly Income and Disposable Income in his/her Chapter 13 bankruptcy case. It is a must for the consumer to be accurate as this form determines how much he/she must pay his/her creditors.


2.) That the income (in Schedule I) when compared to the expenses (in Schedule J) is not large enough to pay all the required debts.

The proposed plan is not going to be accepted or is going to be considered “not feasible” if the difference, between the amount of income (according to calculations) and the amount of debt, is not by much. It would be a different matter if the income is largely greater than the amount of mandatory debts to be paid. The court would allow the consumer to submit a feasible plan, even if there is nothing left in his/her income (after the priority payment) to pay his/her unsecured creditors. Otherwise, the creditors and/or the trustee are going to bring up a feasibility objection against the consumer’s case.

Schedule I and Schedule J:


What is Schedule I?

Schedule I is where the consumer calculates his/her actual current income, which is different from the average monthly income of the 6 months before the filing (that was what was calculated in Form 22)


What is Schedule J?

Schedule J is the consumer’s expenses record (current expenditure). It may include his/her rent or mortgage, car payments, insurance payments, and average grocery expenses, utility bills, gas money and maintenance for vehicles, expenditure for entertainment, and contributions to charitable institutions. The consumer must remember to input data that is reasonable and truthful. The consumer must also employ the idea of keeping the amount of his/her expenses in a reasonable amount. The worst thing that can be done is to exhibit to the trustee that his/her lifestyle is lavish. The consumer may alter his/her budget for it to be in line with what is reasonable given his/her income. The consumer must be able to justify what he/she has inputted in this form and be ready to provide the Trustee proof should/she request it. Some of the proofs that the consumer can accumulate a few weeks before filing are his/her receipts like utility bills, credit card statements, car payment stubs, insurance payments, grocery, gas and pharmacy receipts.

On what do the creditors and trustee base their feasibility objection on?

• If the consumer’s business is failing but has predicted or declared that some income would come in at some point and that he/she would use that income to satisfy the plan.

• If the consumer has a property that is up for sale, and he/she proposed that the proceeds of which is going to be used for the plan, but it has been awhile and the property has not been receiving any offers at all.

• If the consumer’s plan includes a balloon payment but he/she cannot provide or identify a valid source of income that he/she would use for payment.

• If the consumer has been held in contempt for being delayed and/or failing to pay his/her child support or alimony obligation.

• If the consumer is facing a jail sentence (convicted of a crime).