Call Now!
Call Us 414-326-9231 608-260-7133 Text Us 414-326-4709

Courts deals with issue of post-petition modification of Ch. 13 repayment plan

We've been looking in recent posts at the process of modifying a Chapter 13 repayment plan and the grounds for doing so under the U.S. Bankruptcy Code. As we noted, either creditors or debtors may petition the bankruptcy court to modify a repayment plan, but so may the trustee in the case.

One reason the trustee might seek to modify a repayment plan is to account for a debtor's increased earnings after the plan has already been established. Last month, the Seventh Circuit Court dealt with the issue in a case which held that a trustee is able to amend a Chapter 13 plan based on an increase in the debtor's income even after the debtor has already completed his or her five year repayment plan.  

The court was charged with sorting out various provisions of bankruptcy law which made it unclear as to whether a trustee is allowed to modify a repayment plan after it has already been completed. A provision of the code which allows a trustee to demand copies of a debtor's post petition tax returns was one of the reasons the court ruled the way it did. Under the ruling, the bankruptcy court is able to look at a debtor's financial information after a repayment plan is completed and determine whether a retroactive modification of the plan is appropriate. If the debtor is found to be in default due to the court's finding that additional payment is due, the court is able to pronounce the debtor to be in default, in which case several things might happen.

In our next post, we'll wrap up this discussion and look at the importance of working with an experienced advocate in the bankruptcy process, particularly with respect to handling repayment plan issues.

No Comments

Leave a comment
Comment Information
Email Us For A Response

Free Case Evaluation

* indicates required field

Miller & Miller Law, LLC
  • VISA
  • Master Cards
  • Discover
Milwaukee Office map Madison Office map Kenosha Office map

633 W Wisconsin Ave, Suite 500
Milwaukee, WI 53203

Toll Free: 866-678-9352
Phone: 414-326-9231
Phone: 414-312-6581
Fax: 414-277-1303
Milwaukee Office

2810 Crossroads Drive
Suite 4001
Madison, WI 53718

Toll Free: 866-678-9352
Phone: 414-326-9231
Phone: 608-260-7133
Madison Office

6123 Green Bay Road
Suite 210
Kenosha, WI 53142

Toll Free: 866-678-9352
Phone: 414-326-9231
Phone: 262-326-1669
Kenosha Office

Appleton Office
4321 W. College Ave.
Suite 200
Appleton, WI 54914

Toll Free: 866-678-9352
Phone: 414-326-9231
Phone: 920-280-3838
Appleton Office

Brookfield Office
200 S. Executive Drive
Suite 101
Brookfield, WI 53005

Toll Free: 866-678-9352
Phone: 414-326-9231
Phone: 262-261-0665
Brookfield Office

Glendale Office
6333 N. Green Bay Avenue
Glendale, WI 53209

Toll Free: 866-678-9352
Phone: 414-326-9231
Phone: 414-973-8662
Glendale Office

Fax: 414-277-1303 - We also have offices in Appleton, Glendale and Brookfield to better serve you.