Amending a Plan Before Confirmation to Change Plan Payments

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.



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