June 24, 2019

Bankruptcy Court: Debtor May Not Remove Language from Form Chapter 13 Plan Requiring Confirmed Plan to be Modified

The U.S. Bankruptcy Court for the District of Colorado issued its opinion in In re Butcher on Tuesday, September 20, 2011.

§ 1325; § 1327; § 501; § 502—Chapter 13

This case presented the question of whether a debtor may remove language from the district’s form chapter 13 plan requiring the confirmed plan to be modified following the bar date if timely proofs of claim, filed after plan confirmation, indicate that the debtor’s plan does not fully provide for secured and priority claims. The Court held that the Debtors’ alteration does not comply with the district’s L.B.R. 3015- 1(b)(1) requirement that chapter 13 plans must substantially conform to L.B. Form 3015-1.1. The Court discussed the interaction between chapter 13 plan confirmation and claim allowance in chapter 13 cases. The Court concluded that the language appearing in the form plan, which Debtors sought to remove, was necessary to give full effect to both accelerated plan confirmation under BAPCPA and the provisions in the Code and the Rules governing allowance of claims.

Other published Bankruptcy Court opinions can be found here. Unpublished opinions can be found here.

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