When numerous amended plans have to be filed in order to finally get a plan confirmed, it can be expensive, time-consuming, and inefficient for all parties. In the past, I have encouraged the use of “quick fix” amendments to the plan as opposed to filing complete amended plans.
However, after using the new plan form for almost a year, I need to change my policy and restrict the use of amendments to the plan.
Here is my new policy. First, if you want to file an amendment to the plan, you may do so, but only if you use one of the six (6) amendments I am providing for you (see the list with links to Word forms below). Second, you only get to use one amendment in the case.
If you need to change multiple sections of the plan, you will need to file a complete amended plan. If you file an amendment to the plan and the plan is still not confirmable with the amendment, every change you make after that will need to be a complete amended plan.
I admit that I have no legal basis for instituting this new policy. I am doing it to ensure that I will be able to pay claims correctly without piecing a jigsaw puzzle together. But I am still trying to be accommodating by allowing a short amendment to the plan that will truly be an easy fix.
Here are the available amendments (You can use only one of these in the case):
- Amendment to Part 2 (for plan payment changes);
- Amendment to Part 3 (for changes in or additions to the treatment of secured claims);
- Amendment to Parts 2 and 3 (because changes to secured claims often require changes to plan payments as well);
- Amendment to Section 4.3 (when the attorney fee in the plan does not match the fee disclosure);
- Amendment to Section 5.1 (to check the box and make the plan a pool plan);
- Amendment to Section 8.1 (to add or change a nonstandard provision).
That’s it. If you need to change a secured claim and fix an attorney fee problem, you need to file an amended plan. You cannot file two amendments to the plan. If you file an amendment to the plan to increase plan payments, and the plan is still not feasible, you will need to file a complete amended plan to fix everything. You cannot file a second amendment to the plan.
If you use the Amendment to Part 3 or the Amendment to Parts 2 and 3, make sure you list the section(s) you are amending in the upper right-hand corner of the plan, and check the appropriate box(es) in Part 1. The boxes should be checked based on the contents of the amendment, not the original plan. The other plan Amendments have the boxes checked and the Section numbers listed.
Thank you for understanding. Please contact me if you have questions.