The confirmed plan
Once the plan is confirmed, it binds all
the parties: the creditors must accept the payments
provided; the values given in the plan for the secured
portion of claims are fixed; and the debtor's payments over
the life of the plan are fixed, unless the debtor's
circumstances change and the plan is modified.
Living in Chapter 13:
The restrictions on a debtor in Chapter 13 are few:
make plan payments;
don't incur significant new debt without court approval;
and
keep current insurance on any asset that is collateral for
a debt.
The debtor can move or change jobs without restriction.
Court approval may be needed in advance of getting a new
car loan; incorporating a business that is an asset of the
estate; or refinancing, selling or purchasing a home.
Getting that approval can take 30-45 days.
Modifying the plan:
Plans can be changed if there is an interruption of income,
through job loss or ill health. Plan payments can be
lowered or the percentage paid to creditors changed if the
debtor's income or expenses in the future won't fund the
plan as originally confirmed.
The modified plan must meet the tests for plan
confirmation. Sometimes, the amount of money to be paid
into a plan must be increased, where the claims that are
actually filed and allowed are greater than estimated at
the beginning of the case.