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Relief for Debtors: Eleventh Circuit Holds That Change of Circumstances Not Required to Modify a Chapter 13 Plan in In re Guillen

Amanda Nelson*

Photo Credit: https://perma.cc/E64Y-FGTT

In In re Guillen, the United States Court of Appeals for the Eleventh Circuit addressed whether a party is required to demonstrate that they experienced some change in circumstances in order to modify a confirmed Chapter 13 bankruptcy plan under 11 U.S.C. § 1329. The ruling answered a question of first impression for the Eleventh Circuit that has divided some of its sister circuits. The First, Fifth, and Seventh Circuit Courts of Appeals do not require a threshold showing of any change in circumstances in order to modify a confirmed bankruptcy plan, while the Fourth Circuit does require such a showing. The Eleventh Circuit ultimately determined that a change in circumstances is not required to modify a plan, and thereby concurred with the First, Fifth, and Seventh Circuits.

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