Plan Modification
The principal tool for any bankruptcy attorney is the plan modification. Modifications can be filed in numerous situations for various reasons. Plan modifications allow Debtors to change a confirmed plan. Some of the items that can be modified include UCP, plan payment, plan length, debtor intentions, claim treatment, claim interest rates, modify a plan base, and provide for a new claim entirely.
While plan modification procedures will vary between jurisdictions, the overall aim and function will remain the same. Plan modification can only take place after confirmation and must allow sufficient time for creditors to be properly served notice of the modification and given time to object if necessary.
Modifications are also used to provide for new claims that are created by entering into agreements after confirmation to provide for a post-petition arrearage claim. Additionally modifications can be used to cure Trustee arrears or temporarily reduce payments if a Debtor has fallen behind on Trustee payments or needs a temporary reduction in the Trustee payment.
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