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What’s the Difference Between an “Amended Plan” and a “Modified Plan”?

by Brett Weiss, Maryland Bankruptcy Attorney · Posted in *Bankruptcy Information, *Chapter 13 Bankruptcy, Bankruptcy Practice and Procedure

One question we’re asked is what the difference is between an “Amended Chapter 13 Plan” and a “Modified Chapter 13 Plan”.

Depending on where you live, the answer may be, “Nothing.” But here in Maryland (and many other states), the answer can be significant.

In Maryland, an Amended Plan is a Chapter 13 Plan filed before confirmation. Given the various technical requirements imposed under BAPCPA, it not only is typical for a Chapter 13 Plan to be amended once, it is not uncommon to see a Plan amended four or five times before it finally is confirmed (approved by the Court). The Amended Plan is simply filed with the Court and served on creditors, and is dealt with by the Court at the Confirmation Hearing.

A Modified Plan is one where changes are proposed after a Plan has already been confirmed. Plans can change for many reasons: income can go down, expenses can go up (or vice versa), payments can be restructured (for example, if a few Trustee payments were missed), an asset may be surrendered or lost to a Motion to Lift Stay, etc. Along with a Modified Plan, you generally need to file a Motion to Modify Plan, set a hearing date, and notify creditors.

Does it really make a difference if you call an Amended Plan a Modified Plan, or a Modified Plan an Amended Plan? I can’t speak for other states, but in Maryland, the Court Clerk will issue a Deficiency Notice requiring that the Plan be properly named, and if it isn’t, it will be stricken!

About Brett Weiss, Maryland Bankruptcy Attorney

Brett Weiss has been practicing in the areas of bankruptcy for the past 26 years. Mr. Weiss has received international media attention in connection with the cases he had handled. He has been interviewed by Barbara Walters on The View, appeared on the Today Show, Good Morning America, ABC News with Peter Jennings, the Montel Williams Show, BBC World Service, German state television, and numerous local radio and television programs, and been quoted in Money magazine, The Washington Post and The Baltimore Sun, among others. An honors graduate and award-winning National Moot Court Competition national finalist at the University of Maryland School of Law, Mr. Weiss served as law clerk to the Chief Administrative Judge of the Anne Arundel County Circuit Court before entering into private practice. Regularly appearing before the United States Bankruptcy Court, state and federal courts throughout the State of Maryland and the District of Columbia, Mr. Weiss is a strong advocate for his clients.

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