Expert: Terry Leeders - 3/30/2007

Question
I recently filed and am interested in amending my plan. It has not been confirmed yet..am I able to remove a credit card from the plan?..if I am not able to do so and the credit union that issued the card is willing to issue me a new card and not file a proof of claim and transfer the balance...would that be an option for me with out violating any ch 13 rules?...

Answer
Denise,
Any plan modification would need to be confirmed by the judge and approved by the trustee in your case, so you would need a good reason why you are doing so.  You should discuss with your attorney the pro's and cons of paying a debt outside of the case.  You would lose the benefits of the chapter 13 by doing so.  The creditor should not be able to 'transfer' to a new account.  Also you would need court approval to take out new debt during the case. It sounds like the credit union wants you to pay them directly so they would get more than they would if you paid thru the plan.  If they do not file a claim, the debt would be discharged when you complete the case without having to pay them anything.  Something sounds fishy here, so you need to figure out how it would benefit you by asking to do this.  You definitely should talk to your lawyer about it.