Under what circumstances might the court reject a debtor's Chapter 13 plan?

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The court may reject a debtor's Chapter 13 plan if it does not propose to pay unsecured creditors at least as much as they would receive in a Chapter 7 case. This requirement is known as the "best interests of creditors" test. Plan requirements to pay off debts with future earnings or to treat all unsecured classes equally are not necessarily grounds for rejection, and promising to pay all secured and priority claims is actually a requirement for confirmation of a Chapter 13 plan.

Under What Circumstances Might the Court Reject a Debtor's Chapter