More than four decades after the Bankruptcy Code was enacted, we are still tripping over the lingering conundrums of Chapter 13. Four decades, and appeals courts haven't brought clarity and predictability to what should be a simple, well understood process for individuals to reorganize their financial lives. I speak of course about the mysteries of property of the estate, vesting, and plan modification. Section 1306 tells us that property of the estate includes assets and income acquired during the case. Section 1327 recites that confirmation vests all property of the estate in the debtor. Section 1329(b) provides for modification of a confirmed plan. A modified plan must comply with So the modified plan must include all the debtor's income, pay priority claims in full, and all claims within a class get the same treatment. Optional provisions of a plan are laid out in 1322(b). A secured creditor's acceptance or rejection of a plan applies to a modified plan, unless … [Continue reading...]
