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Postconfirmation Modification of the Plan

Before the confirmation of a reorganization plan, the debtor can modify it in accordance with Chapter 11, Section 1329.  The court approval is not necessary if it complies with necessary statutory components.  The bankruptcy code does not provide any limitation on the type of modification just before the confirmation of the reorganization plan.

Chapter 11, Section 1329 of the bankruptcy code provides provisions for the modification of confirmed reorganization plans through the debtor, trustee or owner of an unsecured debt.  The bankruptcy code provision insists that the modification should be happened just before the completion of the reorganization plan payments.  Generally the postconfirmation modification of the plan is made to change in the volume of amount paid to creditors, or the time for such payments or any payments that requires more priority such as health insurance for the debtor.

The modification of a reorganization plan after confirmation is based on certain procedures.  The procedures are as follows:

  • The modification of a postconfirmation plan should be proposed by the proponent;
  • The modification of a postconfirmation plan must be filed through a motion;
  • The motion for modification should be attached with the proposed modification; and
  • The proposed modification must be clear and specific.

There must be at least 21 days period to file an objection for the debtor, trustee or all the creditors.  If there is an objection, the court considers and disposes the proposed modification in a hearing.  Generally, if the court feels that the circumstances of the bankruptcy case warrant such a modification as necessary, the court confirms such a proposed modification in the plan only after proper notice and final hearing.

Inside Postconfirmation Modification of the Plan