Call Now!
Call Us 414-326-9231 608-260-7133 Text Us 414-326-4709
${site.data.firmName}${SEMFirmNameAlt}

Courts deals with issue of post-petition modification of Ch. 13 repayment plan, P.2

Last time, we began looking at a recent case from the Seventh Circuit Court of Appeals in which the court ruled that the U.S. Bankruptcy Code allows a trustee is to petition the court for repayment plan modification after the plan has already been completed. As we noted, the ruling allows the bankruptcy court to find that the debtor is in default if additional payment is due, which can lead to several results.

If the debtor is deemed to be in default, there are several possibilities. One is that the debtor is given the opportunity to cure the default, if possible. Another is that the court may block discharge of debts, which would be an unfortunate for the debtor. Another possibility is that the Chapter 13 case could be dismissed so that it may be converted to a Chapter 7 filing. 

For debtors, the topic of repayment plan modification is an important one to understand in the bankruptcy process, as a debtor's financial situation can change during the course of a repayment plan, or other circumstances can arise which make it necessary to modify the plan.

When circumstances change such that the repayment plan becomes no longer practicable, a creditor threatens to object to the repayment plan, or the debtor unintentionally fails to list all the creditors, the plan may be modified. Knowing how to go about doing that is important to ensure the process goes as smoothly as possible. It is also important to ensure that the debtor receives the benefit of discharge through the bankruptcy process so that he or she is able to emerge from bankruptcy with a fresh start. 

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

Phone: 414-312-6581
Fax: 414-277-1303
Milwaukee Office

2810 Crossroads Drive
Suite 4001
Madison, WI 53718

Phone: 608-260-7133
Madison Office

6123 Green Bay Road
Suite 210
Kenosha, WI 53142

Phone: 262-326-1669
Kenosha Office

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

Phone: 920-280-3838
Appleton Office

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

Phone: 262-261-0665
Brookfield Office

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

Phone: 414-973-8662
Glendale Office

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