Completing Personal Bankruptcy Plans

Conditions for approved completion in Chapter 13 personal bankruptcy hearings

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Completion of the Personal Bankruptcy Plan

Under 11 U.S.C. 1327, the debtor is bound by confirmation and remains subject to continuing personal bankruptcy responsibilities:

The provisions of a confirmed plan bind the debtor and each creditor, whether or not the creditor's claim is included in the plan, and whether or not a creditor objected to, accepted, or rejected the plan terms;
Unless otherwise provided by terms of the personal bankruptcy plan, or by order of the court, confirmation vests all property of the personal bankruptcy estate in the debtor; and
Unless otherwise provided by terms of the personal bankruptcy plan, or the order of the court, property vested in the debtor is free and clear of creditor claims.

Before completion, debtors may modify a plan filed under Chapter 13. Changed circumstances, especially a significant change in income, often require modification. If payments are late the trustee, creditors, or a party in interest may file a motion to dismiss. Often modifications are allowed to accommodate income fluctuations, job loss, and temporary lay offs.