Can a ch13 plan under new law be modified?

[hhou812hh]

This question is probably for HHM or Todd since no one has any experience with this yet.
If someone is in a plan next year and gets pay increases of 3%, but IRS allowable expenses goes up 8% or more (gas, heating oil, regional housing expenses), can the plan be modified? I would imagine they would check tax returns and adjust accordingly.

As most of us know we usually get average 3% pay increases while the cost of living always leads this.

It's rare that people get pay increases to keep up with inflation. (Unless of course you are a cc executive or a member of congress, LOL)

[HHM]

Yes, 11 USC 1329 still exists under the new law (its the provision that allows modification of a plan). Thus, you can still modify a chapter 13 plan, However, whether you can "tweak" a plan every year for minor increases in income or expenses is an open question, usually its not worth it, but we shall see.

[hhou812hh]

Yes, 11 USC 1329 still exists under the new law (its the provision that allows modification of a plan). Thus, you can still modify a chapter 13 plan, However, whether you can "tweak" a plan every year for minor increases in income or expenses is an open question, usually its not worth it, but we shall see.

I just figured that since I haven't seen a raise for the last 4 years and finally got one a few months ago for only 3%, but with the way gas & oil are going as well as real estate and local taxes all these things not only are increasing at record levels, but they will trickle down to all other areas such as food costs, etc.If someone is paying $150 a month more for these items only 2 years into a plan and get a raise netting only $50 a month it will be hard to complete the plan.

I guess I can assume that someone can convert to a ch7 or claim a hardship discharge for the loss of a job too.

Thanks for the info HHM!!