Plan Modification

After confirmation, a chapter 13 plan may be modified to account for new circumstances. Modifications may affect plan payments, duration, and distributions. Modifications are typically initiated by the debtor or the standing trustee, although unsecured creditors may do so as well.

Glossary Terms: 
Chapter 13 Plan
Trustee
Unsecured
Standing Trustee
Confirmation

Frequently Asked Questions

Our frequently asked questions also address Plan Modification:

What happens if I fall behind on my chapter 13 payments?

If you miss payments on your chapter 13 plan, you risk being dismissed from your bankruptcy case, or in more unusual circumstances converted to chapter 7. If your case is dismissed, your creditors will be able to resume efforts to collect from you, and you will not receive a bankruptcy fresh start. If a case is converted, a chapter 7 trustee will be appointed to sell your non-exempt property and pay your creditors.

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Blog Posts

We have discussed Plan Modification in the following posts on our bankruptcy blog:

Bankruptcy and Tax Refunds

Feb 13, 2014

For many North Carolinians, annual tax refunds play a valuable role in the household budget. When contemplating bankruptcy, it's worth considering how the bankruptcy process interacts with the receipt of tax refund payments.

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Modify What Exactly? Modifications in Bankruptcy

Feb 27, 2014

Bankruptcy is unfortunately jargon-filled. Worse, some words have different meanings depending on the bankruptcy context. On this blog, I've previously discussed the two meanings of feasibility in bankruptcy. Another word that leads to confusion is modify and modification.

There are three common contexts where the term modify is observed:

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