Yes. 11 USC § 1329 allows the debtor, the trustee, or an unsecured creditor to move to modify a confirmed Chapter 13 plan to change the amount of payments, the time over which payments are made, or how much is paid to a particular class of claims. Modifications are common when income, expenses, or family size change during the typical three-to-five-year plan.
The Statutory Authority: § 1329
11 U.S.C. § 1329 authorizes post-confirmation modification of a Chapter 13 plan at any time before completion of payments. The motion can be brought by the debtor, the Chapter 13 trustee, or the holder of an allowed unsecured claim. The available modifications are:
- Increase or reduce the amount of payments on claims of a particular class
- Extend or reduce the time for payments
- Alter the amount of distribution to a creditor whose claim is provided for by the plan, to take account of payments made other than under the plan
- Reduce amounts to be paid for health insurance under specified conditions
The modified plan becomes the plan unless an interested party objects within the time fixed by the court. Section 1329(b)(2) specifies that, with limited exceptions, the modified plan must continue to comply with §§ 1322(a), 1322(b), 1323(c), and 1325(a) — meaning the same confirmation standards that applied to the original plan.
Why Most Modifications Get Filed
The most common driver is a material decrease in the debtor's projected disposable income. Job loss, hours cut, medical events, and family disruption all show up routinely on the docket as § 1329 motions. Less commonly, modifications are filed to:
- Account for unexpected windfalls (tax refunds, settlements, bonuses) that may need to flow into the plan
- Adjust treatment of secured creditors after surrender of collateral
- Cure arrears that accumulated post-confirmation
- Add or remove specific debt categories from the plan's treatment
When Income Drops
If the debtor's income falls and the plan payment becomes unaffordable, the choices narrow to (1) modify the plan to a lower payment, (2) request a hardship discharge under § 1328(b) if statutory conditions are met, (3) convert to Chapter 7 if eligible, or (4) face dismissal. Modification under § 1329 is usually the first move.
The motion will need to be supported with current income figures — usually amended Schedules I and J reflecting the new financial reality. The trustee will compare the new disposable-income calculation against the original plan's commitment and confirm that the modified plan still meets the disposable-income test of § 1325(b) for above-median debtors or otherwise commits projected disposable income to unsecured creditors for the applicable commitment period.
Practical timing. File the modification motion before missing payments triggers a trustee dismissal motion. Once the case is set for dismissal, modifying becomes a defensive race against the calendar.
The Disposable-Income Calculation in Modification
For above-median-income debtors, § 1325(b)(1)(B) requires the plan commit all projected disposable income for the applicable commitment period (typically five years). When modifying, the same calculation applies to the modified plan's go-forward period — but with the new income figure as the input.
Below-median debtors have more flexibility on plan length but still need the modified plan to satisfy § 1325 confirmation standards on the new numbers.
Documentation Required
Most jurisdictions require the modification motion to attach or be supported by:
- Amended Schedule I (current income)
- Amended Schedule J (current expenses)
- Recent pay advices (typically 60 days)
- An amended plan reflecting the modification
- A declaration explaining the change in circumstances
Trustee practice varies by district. Some Chapter 13 trustees require additional documentation routinely; some only when the trustee or a creditor objects.
The Trustee's Role
The standing Chapter 13 trustee will review the modification, run the new disposable-income math, and either support or oppose. Trustees typically support modifications driven by genuine income drops and oppose modifications that read as strategic balance-shifting (for example, lowering payments while household income has actually risen).
Negotiation between debtor's counsel and the trustee often resolves disputes before the hearing. If the trustee opposes and the dispute is real, the court holds an evidentiary hearing on the modified plan.
What Modification Cannot Do
A § 1329 modification cannot exceed the maximum 5-year cap on Chapter 13 plans (with limited cause-shown extensions in some jurisdictions). It cannot generally retreat from previously-confirmed treatment of secured claims that the debtor has already received the benefit of (for example, "stripping down" already-stripped liens further). It cannot cure issues that should have been raised pre-confirmation as objections.
Modifications also cannot defeat the § 1325(b) disposable-income commitment if the new numbers actually show more disposable income than originally projected — the trustee or unsecured-claim holder can use § 1329 affirmatively to capture upside surprises.
Hardship Discharge as Alternative
Where the debtor genuinely cannot complete a plan even on modified terms — through no fault of the debtor, with creditors having received at least as much as they would have under Chapter 7 liquidation, and modification not practicable — the court may grant a hardship discharge under § 1328(b). The hardship discharge is narrower than a regular Chapter 13 discharge (some debt categories not included), but ends the case without requiring full plan completion.
Further Reading
- 11 U.S.C. § 1329 — Modification of Plan After Confirmation
- 11 U.S.C. § 1325 — Confirmation of Plan
- 11 U.S.C. § 1328 — Discharge
- How to Convert Chapter 13 to Chapter 7
- How to Fill Out Bankruptcy Schedules
This page provides educational information only. Plan modification involves court procedure and statutory math. Consult a licensed bankruptcy attorney about your specific situation.