Changes in § 1329.
Modification of plan after confirmation
Reduces Payments by Amount Health Insurance
§1329(a)(4) of the Senate version
only, allows the amount paid under the plan to be reduced by the
cost of health insurance.
Adjusts Period of Modified Plan
§1329(c) adjusts period of modified plan
to be consistent with the minimum plan length set in 1325(b)(1)(B).
Text appearing below in blue is the same in
H.R.333 and S.420. Text
in maroon is only in H.R.333. Text in
green is only in S.420.
11 USC § 1329. Modification of plan after
(a) At any time after confirmation of the plan but before the
completion of payments under such plan, the plan may be modified, upon
request of the debtor, the trustee, or the holder of an allowed unsecured
(1) increase or reduce the amount of payments on claims of a
particular class provided for by the plan;
(2) extend or reduce the time for such payments; or
(3) alter the amount of the distribution to a creditor whose claim is
provided for by the plan to the extent necessary to take account of any
payment of such claim other than under the plan.
(4) reduce amounts to be paid under the plan by
the actual amount expended by the debtor to purchase health insurance
for the debtor and any dependent of the debtor (if those dependents do
not otherwise have health insurance coverage) if the debtor documents
the cost of such insurance and demonstrates that--
(A) such expenses are reasonable and
(i) if the debtor previously paid for
health insurance, the amount is not materially larger than the cost
the debtor previously paid or the cost necessary to maintain the
lapsed policy, or;
(ii) if the debtor did not have health
insurance, the amount is not materially larger than the reasonable
cost that would be incurred by a debtor who purchases health
insurance and who has similar income, expenses, age, health status,
and lives in the same geographic location with the same number of
dependents that do not otherwise have health insurance coverage; and
(C) the amount is not otherwise allowed for
purposes of determining disposable income under section 1325(b) of
Upon request of any party in interest the
debtor shall file proof that a health insurance policy was purchased.
(1) Sections 1322(a),
of this title and the requirements of section 1325(a)
of this title apply to any modification under subsection (a) of this
(2) The plan as modified becomes the plan unless, after notice and a
hearing, such modification is disapproved.
(c) A plan modified under this section may not provide for payments
over a period that expires after the applicable
commitment period under section 1325(b)(1)(B) after the time that
the first payment under the original confirmed plan was due, unless the
court, for cause, approves a longer period, but the court may not approve
a period that expires after five years after such time.