Under 1329 the ‘Disposable Income Test’ Applies In A Post-Confirmation Plan Modification

Under 1329 the ‘Disposable Income Test’ Applies In A Post-Confirmation Plan Modification – Doesn’t It?

By Joseph A. Bledsoe, III, Chapter 13 Standing Trustee for the Eastern District of North Carolina

Recently, I had a spirited conversation with a reputable debtors’ attorney regarding the application of 11 U.S.C. § 1325(b) to a post-confirmation plan modification under 11 U.S.C. § 1329. Now, I know this topic is old news for most of you, and that courts have been considering this issue since before I got my law license, but please stay with me.

I received a proposed modification and emailed the debtors’ attorney to request some supporting documentation – namely, an . . .

It looks like you are not signed in or registered! This content is only available to members.

Or Sign In Below:

No Author Biography has been linked to this Article.

Ask Ms. Ps & Qs

Nancy B. Rapoport

November 12, 2023

Cathy Moran’s article Bankruptcy Lawyer Must Have Otherworldly Powers raised an interesting issue: what should a lawyer do when a client calls and says, “what the heck IS this [notice, letter, order, whatever] that I just got?” Professor Rapoport’s take on this issue is not at all what you would expect. She puts the responsibility squarely on . . .

Members

Critical Case Comment – Stay Violation: Repossession No, Sale Yes

Henry E. Hildebrand, III

November 6, 2022

Although the retention of collateral validly repossessed prior to the filing of the petition does not violate the stay, the sale of that property does violate the stay and the sale is void. (Bonapfel) In re Rakestraw, 2022 WL 4085881 (Bankr. N.D. Ga. Sept. 6, 2022) Case Summary Ms. Rakestraw filed Chapter 13 on August 12, 2022, listing her ownership...

Members

What About Conditional Confirmation?

Henry E. Hildebrand, III

April 14, 2024

It is appropriate to convert a Chapter 13 case to one under Chapter 7 when the debtor makes no attempt to cure defaults that arise in the case or take any steps to propose a feasible plan.

Members

From the Archives – Escrow 101 and 102

Michael J. McCormick, Esq.

April 7, 2024

In the fall of 2021, Michael McCormick provided subscribers with an EXCELLENT, expository, seven-part outline on mortgage escrow. This information is still relevant today.

Members

Critical Case Comment – Punitive Damages? Yep.

Henry E. Hildebrand, III

March 10, 2024

Punitive damages can be awarded for a violation of Rule 3002.1 even where there are no compensatory damages, other than attorney’s fees.

Members

From the Editor – Claims

February 9, 2020

By The Honorable William Houston Brown (Retired) Failure to include creditor on matrix not grounds to extend time for proof of claim. The Chapter 13 debtor had timely filed her list of creditors, pursuant to Rule 1007(a), but she failed to include a creditor either on that list or in the schedules, resulting in the creditor not receiving notice of...

Members

Critical Case Comment

January 26, 2020

By Henry E. Hildebrand, III, Chapter 13 Standing Trustee for the Middle District of Tennessee (Nashville) When a case converts from Chapter 13 to Chapter 7 prior to the confirmation of a plan, the Chapter 13 Trustee is not permitted to divert funds from the debtor to the debtor’s attorney. In re Lettie, 597 B.R. 637 (Bankr. E.D Wis. 2019)...

Members

From the Editor – Claims

October 20, 2019

By The Honorable William Houston Brown (Retired) Claim allowed after reopening of no-asset case. The Chapter 7 case filed as no-asset was reopened after discovery of assets for distribution, and debtors objected to a claim on basis of statute of limitations. Affirming, the Bankruptcy Appellate Panel held that the time to commence action on the claim had been tolled under...

Members

Six Things Taxpayers Should Know About the Sharing Economy and Their Taxes

May 5, 2019

From renting spare rooms and vacation homes to car rides or using a bike…name a service and it’s probably available through the sharing economy. Taxpayers who participate in the sharing economy can find helpful resources in the IRS Sharing Economy Tax Center on IRS.gov. It helps taxpayers understand how this activity affects their taxes. It also gives these taxpayers information...

Ask Ms. Ps & Qs

Nancy B. Rapoport

February 18, 2024

This month, Prof. Rapoport looks at the question: What should happen when the Rule 2016 statement on compensation conflicts with the SOFA #16?

Members