Modification of Chapter 13 Plan Post-Confirmation
Post-Confirmation Modification: The
bankruptcy debtor,
the bankruptcy trustee, or an unsecured creditor may request a modification of a
plan at any time after it has been confirmed but before all payments
have been made. Modification may result in larger or smaller payments to
a particular class, a longer or shorter payout period, or a change in
the amount to be paid to a creditor to adjust for any payment obtained
from a third party or from property outside of the plan. Generally, a
request for post confirmation modification of a plan occurs under
circumstances where the income or expenses of the debtor have changed
materially and unexpectedly.
For example, where the bankruptcy debtor's annual income (which at the time of
confirmation had been approximately $80,000) had risen to almost
$200,000, the court granted an unsecured creditor's motion (i) to
increase the debtor's monthly payments under the plan from $800 to
$1,500, and (ii) to extend the payment period from three years to five
years. [In re Arnold, 869 F.2d 240 (4th Cir. 1989)]
In another case, the bankruptcy debtor was permitted to increase payments to a
secured creditor to cure post-petition arrearages that had accrued
during a period when the debtor was unemployed for health reasons and
was not receiving wages. However, the modification had to satisfy the
requirements for confirmation, and, more specifically, the cram down
provisions of Bankruptcy Code section 1325(a)(5).
The bankruptcy debtor will be granted a discharge under Chapter 13
after she has made all payments under the plan unless, subsequent to the
order for relief, she has executed a court-approved written waiver of
discharge. Bankruptcy Code §1328(a). The discharge in a Chapter
13 case is more extensive than that in a chapter 7 case and may include
debts that were incurred by fraud.
Encinitas, California
Encinitas is a coastal city in northern San Diego
County, California. As of the 2000 census, the city had
a total population of 58,014. It is located about 40 km
(25 mi) north of San Diego, and about 150 km (95 mi)
south of Los Angeles.
The city was incorporated in 1986 from the communities
of historic Encinitas, new Encinitas (Village Park,
etc.), Leucadia, Cardiff-by-the-Sea and Olivenhain.
These communities retain their identities, and their
distinctive flavors.
The largest single industry is the growing of ornamental
flowers, particularly poinsettias.
The City is governed by a five-member City Council,
elected at-large to staggered four-year terms at
two-year intervals.
The Pacific Bankruptcy Center assists the residents of Encinitas,
California in
filing for relief under the United States bankruptcy code. We are a debt
relief agency
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