Debra Booher &Associates Co., Lpa Click here to get your free Legal evaluation
Call Us Today Toll Free

Court rules against debtors' bankruptcy modifications

Based on the ruling of one court, people in Ohio who file for Chapter 13 bankruptcy and then want to make modifications to the model plan must go through the legal system rather than taking it upon themselves to do so. This was the judgment of the U.S. Bankruptcy Court for the Northern District of California after five debtors attempted to make modifications themselves that prevented the trustee from distributing any excess funds.

The debtors' argument was that the modification should be permitted since the trustees and the creditors did not object. Their modification would have allowed them to obtain a discharge once they had paid off the plan and would not require them to pay unsecured claims.

According to the bankruptcy court, the correct procedure in such a case is set out in Bankruptcy Code Section 1329. All Chapter 13 plans must run for a certain length of time, and modifying how long that period is can only be changed with a motion.

A person who is struggling with debt may feel overwhelmed. They might be concerned that filing for bankruptcy will leave them with nothing. In fact, a Chapter 13 bankruptcy filing allows a person to keep assets after working out a payment plan with creditors. An attorney may be able to advise as to what type of bankruptcy a person is eligible for or what their best option may be regarding debt relief. The lawyer may also be able to clarify any misconceptions the person might have about bankruptcy. For example, the person might think that their credit will not recover from a bankruptcy filing. However, an individual can actually begin working to repair their credit soon after a filing.

No Comments

Leave a comment
Comment Information
Email Us For A Response

How Can We Help?

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Cuyahoga Falls Office
1350 Portage Trail
Cuyahoga Falls, OH 44223

Cuyahoga Falls Law Office Map

Beachwood Office
3401 Enterprise Pkwy.
Suite 340
Beachwood, Ohio 44122

Map & Directions

Independence Office
4700 Rockside Rd
Suite 415
Independence, Ohio 44131

Map & Directions

Westlake Office
1991 Crocker Rd
Suite 600
Westlake, Ohio 44145

Map & Directions

Canton Office
4450 Belden Village Street NW
Suite 204
Canton, Ohio 44718

Map & Directions

Ravenna Office
2633 St. Rt. 59
(Orchard Plaza)
1st floor
Ravenna, Ohio 44266

Map & Directions