When to Modify
Life changes during a 3-5 year plan. Job loss, income reduction, medical emergency, divorce, or increased expenses may require modifying your plan. Section 1329 allows the debtor, trustee, or unsecured creditor to request modification after confirmation.
What Can Be Changed
Monthly payment amount (increase or decrease). Plan duration (up to 60 months maximum). Distribution to unsecured creditors. Treatment of specific claims. The modified plan must still meet the requirements of Section 1325(a).
You cannot modify the plan to eliminate payment of priority claims or reduce secured claims below the collateral value.
The Process
File a motion to modify with the court. Serve the proposed modified plan on the trustee and all creditors. The trustee reviews and may object. The court holds a hearing if there are objections. If approved, the modified plan replaces the original.
Learn about hardship discharge if modification is not enough
Hardship Discharge Guide