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In re: Charles Roosevelt Williams

21 B 14066
The chapter 13 Trustee filed a motion to dismiss for nonpayment.  Debtor filed a motion to modify his plan, requesting suspension of payments while he was out on medical leave.  Debtor then filed an amended motion to modify, requesting a longer suspension when his medical leave was extended.  After hearing testimony from the Debtor, the court HELD: Temporary suspension of payments can be an appropriate modification of a chapter 13 plan.  Both case law and non-statutory procedures used in various courts support this proposition.  In this situation, although the Debtor was sincere and credible, the proposed modification did not meet the requirements of 11 U.S.C. § 1325(a).  Suspension is temporary, not indefinite.  Debtor did not have a return-to-work date that was certain.  Suspension of payments for an indefinite period of time did not satisfy the requirements that a plan must be proposed in good faith and that a debtor must be able to make all payments under the plan.  Therefore, the amended motion to modify was denied and the motion to dismiss was granted.

Thursday, June 1, 2023