Germeraad v. Powers

(7th Cir. June 23, 2016)

The Seventh Circuit reverses the bankruptcy court, concluding that the bankruptcy code permits modification of a confirmed Chapter 13 plan based on increased income post-confirmation. While the code does not expressly permit modification on this basis, other courts have permitted this. The trustee had filed a motion to increase the debtors’ plan payments based on an alleged $50,000 post-confirmation increase in the debtors’ annual income. Opinion below.

Judge: Adelman

Attorney for Debtor: Eugene Wedoff

Attorney for Trustee: Kenneth T. Siomos

2016-06-23 – germeraad v powers

Author: Matt Lindblom

In re Ridings

(Bankr. E.D. Ky. Dec. 22, 2015)

The court denies the Chapter 13 debtors’ motion to modify the confirmed plan to reduce the secured claim of the IRS. The debtors argued that the collateral was not worth the amount of the claim, but the Court holds that reducing an allowed secured claim is not a modification permitted by the code. Opinion below.

2015-12-22 – in re ridings

Author: Matt Lindblom

In re Gibson

(Bankr. E.D. Ky. Mar. 20, 2015)

The bankruptcy court denies the chapter 13 debtor’s motion to modify his plan. The debtor sought to reclassify the creditor’s secured claim as an unsecured claim. Apparently, the creditor may have perfected its lien postpetition, but the confirmed chapter 13 plan nevertheless treated the claim as secured. Following missed plan payments to the creditor, the debtor sought the plan modification. The court holds that while modifications to the amount or timing of specific payments may be permitted, modifications to reclassify claims are prohibited. Opinion below.

2015-03-20 – in re gibson

Author: Matt Lindblom