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

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

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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Brett Weiss, a senior partner at Chung & Press, LLC, represents people and businesses in all phases of bankruptcy. He has experience in complex individual Chapter 7, Chapter 11 and Chapter 13 bankruptcy cases, and in Chapter 11 small business restructuring and reorganization. Mr. Weiss lectures nationally on bankruptcy issues. He has testified before the Federal Bankruptcy Rules Committee, the Consumer Financial Protection Bureau, and has twice testified before Congress on bankruptcy and credit issues. Brett Weiss is the co-author of Chapter 11 for Individual Debtors, and has written Not Dead Yet: Bankruptcy After BAPCPA, for the Maryland Bar Journal, as well as hundreds of blogs for the Bankruptcy Law Network. With his law partner, he recorded a 13-hour basic bankruptcy training series, and leads intensive three-day Chapter 11 training boot camps. Mr. Weiss has received international media attention in connection with his work. He was interviewed by Barbara Walters on The View, has appeared on the Today Show, Good Morning America, ABC News with Peter Jennings, the Montel Williams Show, National Public Radio, AARP-TV, the 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. Brett Weiss is the Maryland State Chair for the National Association of Consumer Bankruptcy Attorneys, a founding member of the Bankruptcy Law Network, on the board of the Maryland State Bar Consumer Bankruptcy Council, and a member of the American Bankruptcy Institute, the Bankruptcy Bar Association of Maryland, and the Civil Justice Network. He has been recognized as a “Super Lawyer” every year since 2007 for Maryland and the District of Columbia, and in 2011 received the Distinguished Service Award from the National Association of Consumer Bankruptcy Attorneys for his work on behalf of consumers across the country. Mr. Weiss is admitted to practice before Maryland and District of Columbia federal and state courts, the United States Courts of Appeals for the DC, Fourth and Eighth Circuits, The United States Tax Court, and the Supreme Court of the United States, and has been practicing law since 1983.
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