In many Chapter 13 cases debtors don’t get the plan exactly right the first time around. That’s because creditors haven’t filed their proof of claim yet or the trustee has a different interpretation about the amount that the debtor actually makes and their net disposal income. For these and other reasons, it is a common occurrence that a plan needs to be amended during the course of a Chapter 13 case. When that happens the trustee and the debtor’s attorney agree that approval of the plan that has been filed will be denied but that the debtor and the attorney have leave to file an amended plan within a specific period of time. Sometimes, especially if the debtor is behind on their monthly Chapter 13 payments, the trustee will object to allowing leave to amend the plan and the debtor’s lawyer will have to ask the bankruptcy judge for permission to amend a Chapter 13 plan that can’t be confirmed.
What happens in my Chapter 13 case when my plan is denied with leave to amend?
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Ronald J. Drescher has been practicing since 1986 in the areas of business transactions, commercial litigation, loan documentation, bankruptcy, creditors’ rights, and out-of-court workouts. His experience also includes corporate reorganizations, insolvency, business and tax planning.
