What is Chapter 13 Plan Modification?
What is a Chapter 13 Plan Modification? When a debtor is in Chapter 13 Plan and changes need to be made to plan requires a plan modification.
In many cases, a Chapter 13 plan modification is required when a debtor has become delinquent on mortgage loan and an agreed order is signed to place arrearage in the plan. This type of plan modification will likely cause a plan payment increase for the Chapter 13 debtor.
However, this same process of modifying plan is required if a Chapter 13 debtor chooses to surrender, sale or refinance a mortgage loan. A Chapter 13 plan modification is required to change the treatment of the debt in the bankruptcy plan therefore changing the plan base and plan payment.
After a Chapter 13 bankruptcy case has been confirmed then any changes to that bankruptcy plan can only be altered by filing a plan modification or “Debtor’s Modification after Confirmation.”
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