Many Florida residents file for Chapter 13 bankruptcy in order to reorganize their debts and gain a fresh start financially. As part of the process, they are required to prepare a debt repayment plan for court approval. Once that plan is approved, modifying or changing it also requires court approval, which will only be given if there is a substantial or otherwise unanticipated change in circumstances that warrants it.
Recently, the Bankruptcy Court denied a couple's motion to modify their plan. They wanted to change their plan in order to surrender an older model vehicle to the secured creditor who loaned them the money to purchase it. The vehicle was purchased just months before the filing of their Chapter 13 petition.