How to Modify a Chapter 13 Plan
A Chapter 13 bankruptcy plan is designed to permit you the ability to pay off all of most of your debts over a period established by the bankruptcy court. Through a plan, you pay an established amount of money to the bankruptcy court trustee each month for a period between two to five years. In the midst of making payments on your Chapter 13 plan, you may reach a point that your financial situation changes and subsequently need to modify your plan.
Other People Are Reading
Instructions
-
-
1
Contact the bankruptcy court trustee and advise of your need to modify the terms of the Chapter 13 plan. The bankruptcy trustee is the court official assigned to oversee your Chapter 13 bankruptcy case.
-
2
Request approval from the bankruptcy court trustee to modify the plan. In most cases, when a trustee approves a proposed alteration in a Chapter 13 plan the court approves the modification.
-
-
3
Obtain from the bankruptcy court clerk a motion to modify form. The bankruptcy court trustee maintains a selection of forms needed to pursue a bankruptcy. These materials are available to individuals not represented by an attorney.
-
4
Insert the caption of your case and the assigned case number at the top of the form.
-
5
Include in the motion the particular reason you seek a modification of the Chapter 13 plan. For example, state that your financial situation changed due to a reduction in your income.
-
6
Make copies of the motion sufficient to provide a duplicate to all creditors, the bankruptcy trustee and for your own records.
-
7
Send a copy of the motion to each of your creditors. Delivery via United States first-class mail is sufficient.
-
8
Deliver a copy of the motion to the bankruptcy court trustee.
-
9
File the motion with the bankruptcy court clerk.
-
10
Obtain a notice of objection form from the court clerk. The notice of objection form gives your creditors a specific deadline to object to your motion. Absent any objections, there should be not problem obtaining approval of your modification. The clerk will provide you with the deadline to include in your notice of objection. In some jurisdictions, the court clerk will send out the notice of objection to your creditors. In other locales, you need to do this yourself.
-
11
Attend a hearing that the court schedules if any objections are received. At this hearing, you present evidence and arguments supporting your request to modify the Chapter 13 plan.
-
1
References
- Cornell University Law School: Title 11--Bankruptcy
- "The Glannon Guide to Bankruptcy”; Nathalie Martin; 2006
- Cornell University Law School: Bankruptcy
- American Bar Association: Bankruptcy & Insolvency Litigation Committee
Resources
- Photo Credit Jupiterimages/Photos.com/Getty Images
