Here’s the scenario: Debtor proposes a plan with payments in the amount of $100/month for 60 months. Plan is not feasible, and in month 4 of the plan debtor amends the plan to increase plan payments to $250/month.
Here’s the problem: The amended plan says that the debtor will make plan payments of $250/month for 60 months.
OOPS – the debtor is now delinquent because the plan changed the payments retroactively. Debtor paid $100/month for 4 months and should be current, but the amended plan says she should have paid $250/month starting with the first month.
Debtors’ attorneys, don’t cause your client to become delinquent. The EDKY form chapter 13 plan has a “payment schedule” built in. Here is what the amended plan should look like:
2.1 Debtor(s) will make regular payments to the trustee as follows:
$ 100 per Month for 4 months $ 250 per Month for 56 months $ per for months
Insert additional lines if needed.
Use the payment schedule when amending the plan to change plan payments.