The Chapter 13 Process - Part 8
By Douglas Jacobs, California Bankruptcy Attorney on Oct 8, 2007 in Chapter 13 Bankruptcy
So, the plan is confirmed, you are making payments and the claims have been filed, objected to, or allowed. Now what?
Many things can happen (and usually do) during the period of a Chapter 13 plan. You can lose your job, get a better job, get ill, decide to sell your house, or get a terrific refinance deal. These are normal events in a person’s life, and just because you are in a Chapter 13 plan doesn’t mean they won’t happen to you.
But, as my friend and colleague Cathy Moran wrote about in a recent post, Chapter 13 plans are exceedingly flexible. You can dismiss the plan and the case, pretty much at any time, and you can file a motion to modify the plan. Thus, if you come into some money or can refinance your house to pay everything off, you can. If you run into some bad luck and need to reduce, or even stop, making payments, you can convert the case to a Chapter 7.
In fact, modifications are so normal that its unusual (at least in the Eastern District of California) for a Chapter 13 to go all the way from confirmation to discharge without at least one plan modification.
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