Randall Woolley
Askounis & Darcy,
PC
Chicago, Illinois
Section 1329 of the
Bankruptcy Code permits modification of a confirmed plan to
increase or reduce the amount of plan payments. However, trustees and creditors are seemingly
reluctant to disturb a confirmed plan, in part because Section 1329 does not
specifically set forth when modification is appropriate. The Seventh Circuit recently held in Germeraad v. Powers, No. 15-3237 (7th Cir. June 23, 2016) that an increase in the debtor’s income after plan
confirmation may serve as a basis for modifying the Chapter 13 plan in order to
increase the amount paid to unsecured creditors.