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In re Wilburn (Case No. 14-70032) 8/22/2016

Above median debtor filed an amended plan due to a reduction in income that proposed to reduce both the payment and the term of the plan.  The Chapter 13 Trustee objected to the plan contending that the debtor could not both reduce the applicable commitment period and reduce the amount to be paid.  Relying on the reasoning in In re Davis, the Court held that Section 1325(b) is not applicable to plan modification under Section 1329(a) and overruled the Trustee’s objection.  The wording of Section 1329 read in conjunction with the Code’s rules of construction code section (Section 102(5)) supports the conclusion that the modification options set forth in Section 1329(a) are not mutually exclusive and are available either separately or in combination, provided the applicable elements of Section 1329(b)(1) are met.

Monday, August 22, 2016
Applicable Commitment Period
Chapter 13 Issues
Confirmation of Plan
Good Faith
Statutory Construction