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!
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