PROHIBITION OF RETROACTIVE ASSESSMENT OF DISPOSABLE INCOME.

SEC. 1006. PROHIBITION OF RETROACTIVE ASSESSMENT OF DISPOSABLE INCOME.(a) Confirmation of Plan.—Section 1225(b)(1) of title 11, United States Code, is amended—(1) in subparagraph (A) by striking “or” at the end;(2) in subparagraph (B) by striking the period at the end and inserting “; or”; and(3) by adding at the end the following:“(C) the value of the property to be distributed under the plan in the 3-year period, or such longer period as the court may approve under section 1222(c), beginning on the date that the first distribution is due under the plan is not less than the debtor’s projected disposable income for such period.”.(b) Modification of Plan.—Section 1229 of title 11, United States Code, is amended by adding at the end the following:“(d) A plan may not be modified under this section—“(1) to increase the amount of any payment due before the plan as modified becomes the plan;“(2) by anyone except the debtor, based on an increase in the debtor’s disposable income, to increase the amount of payments to unsecured creditors required for a particular month so that the aggregate of such payments exceeds the debtor’s disposable income for such month; or“(3) in the last year of the plan by anyone except the debtor, to require payments that would leave the debtor with insufficient funds to carry on the farming operation after the plan is completed.”.