The debtors filed a motion to sell their residence and use a portion of the proceeds to pay in full the balance owed pursuant to their confirmed chapter 13 plan.  The chapter 13 trustee did not object to the motion to sell, but argued that if the motion was granted, the debtors should be required to pay their unsecured claims in full from the proceeds of the sale.  At the hearing on the matter, the chapter 13 trustee made an oral motion to modify the debtors’ chapter 13 plan to require the debtors to make such a payment.  The Court noted that in the Fourth Circuit a trial court must (a) determine whether the debtor has experienced a significant and unanticipated change in his or her financial condition; (b) determine whether the requirements of Section 1329(a) are met; and (c) determine whether the requirements of Section 1329(b) are met.

            The Court concluded that the increase in the value of the debtors’ real property did not form a basis for modifying their confirmed chapter 13 plan because it had no effect upon the debtors’ financial situation that is relevant to the administration of their chapter 13 case.  The Court thus denied the motion to modify.