Plan modification

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Compassion Wins the Day in Modification Case

The bankruptcy court properly exercised its discretion when it found that the chapter 13 debtor did not have to contribute the life insurance proceeds he received upon the death of his wife to repay his creditors in full, where the funds were necessary to his support. <i>Townson v. McAllister (In re McAllister),</i> No. 14-106 (N.D. Ga. Oct. 14, 2014). [Read more…] about Compassion Wins the Day in Modification Case

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Trustee May Not Compel Use of Non-Estate Property in Modified Plan

Relying on Eleventh Circuit precedent, a Georgia bankruptcy court found that a debtor could not be compelled to contribute life insurance proceeds received more than 180 days post-petition to his modified chapter 13 plan. In re McAllister, 2014 WL 1624106 (Bankr. N.D. Ga. April 3, 2014). [Read more…] about Trustee May Not Compel Use of Non-Estate Property in Modified Plan

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Shortening Plan Duration without Decreasing Payment Amount Constitutes Modification

A proposed change to a confirmed chapter 13 plan that would pay creditors the same amount owed through the confirmed plan over a shorter period of time constitutes a “modification” to which section 1329 applies. In re Refosco, No. 13-cv-01219 (W.D. Pa. April 9, 2014). [Read more…] about Shortening Plan Duration without Decreasing Payment Amount Constitutes Modification

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Section 1325(b) Requirements Not Applicable to Plan Modification

The Ninth Circuit BAP found that the requirement of section 1325(b) that all of the debtor’s projected disposable be paid into the plan during the applicable commitment period, is not incorporated into section 1329 for plan modification. In re Mattson, No. 11-1478 (B.A.P. 9th Cir. April 5, 2012). [Read more…] about Section 1325(b) Requirements Not Applicable to Plan Modification