Murphy v. ODonnell (In re Murphy)
Jan
18
2007
Ruling
Bankruptcy court properly allowed modification that provided greater payment to unsecured creditors where there was substantial change and denied in second case absent change.
Procedural posture
In two bankruptcy cases before the District Court for the Eastern District of Virginia, the chapter 13 trustee sought to modify a confirmed chapter 13 plan to increase the amount to be paid to the unsecured creditors. The bankruptcy court denied the motion to modify in case one, but granted it in case two and the district court affirmed the decisions. The trustee appealed in case one and the debtor appealed in case two.
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