RSSChapter 13 debtor could not modify confirmed Chapter 13 plan to create new secured creditor class.
Jul 06
A Chapter 13 debtor who had chosen not to provide for a secured creditor in the plan that was ultimately confirmed, thereby enabling the creditor to successfully move for relief from the stay to exercise its rights in the nonresidential real property that secured its claim, could not utilize a postconfirmation modification in order to create a new secured creditor class consisting of this creditor, in an attempt to prevent the creditor from exercising its state law rights. Even ignoring the fact that the motion to modify the plan was not properly served, and even assuming that the debtor could modify a confirmed plan with no showing of any substantial, unanticipated change in his circumstances, use of a postconfirmation modification to create a new secured creditor class was not one of the three statutorily permissible justifications for such modifications. Thus, the plano dallas bankruptcy debtor was bound by the terms of his confirmed plan.
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