§ 114.5     To Provide for Postpetition Creditors
Cite as:    Keith M. Lundin, Lundin On Chapter 13, § 114.5, at ¶ ____, LundinOnChapter13.com (last visited __________).
[1]

Postpetition claims present many knotty problems in Chapter 13 cases.1 The debtor is permitted by § 1322(b)(6) to provide for payment of all or any part of a postpetition claim allowed under § 1305.2 It is not uncommon for Chapter 13 plans to omit any reference to postpetition claims.

[2]

When a postpetition claim arises—for example, a medical bill or tax claim—the debtor must modify the plan to manage the claim. Modification after confirmation to provide for postpetition claims is not allowed by all courts.3 The safer route for the debtor is to modify the plan before confirmation to provide for claims allowed under § 1305.

[3]

Preconfirmation modification to provide for postpetition claims does not guarantee that postpetition claims will be paid through the plan or discharged upon completion of payments because the postpetition claim holder has an option whether to participate in the plan by filing a proof of claim.4 But the debtor is best positioned to deal with a postpetition claim holder by modifying the plan to provide for postpetition claims.

[4]

Postpetition defaults with respect to prepetition debts are not postpetition claims under § 1305; but when the plan proposes to cure defaults under § 1322(b)(3) or (b)(5), the postpetition defaults must be accounted for.5 It has been held that the debtor can modify the plan prior to confirmation to include postpetition arrearages that have accumulated on a mortgage that the debtor proposes to cure and maintain through the plan.6


 

1  See §§ 204.1 [ Providing for Postpetition Claims ] § 113.6  Providing for Postpetition Claims, 261.1 [ To Provide for Postpetition Claims ] § 127.4  To Provide for Postpetition Claims, 281.1 [ Postpetition Claims ] § 132.9  Postpetition Claims, 302.1 [ Postpetition Claims ] § 137.1  Postpetition Claims before BAPCPA and 350.1 [ Postpetition Claims ] § 158.6  Postpetition Claims.

 

2  See § 204.1 [ Providing for Postpetition Claims ] § 113.6  Providing for Postpetition Claims.

 

3  See § 261.1 [ To Provide for Postpetition Claims ] § 127.4  To Provide for Postpetition Claims.

 

4  See §§ 281.1 [ Postpetition Claims ] § 132.9  Postpetition Claims, 302.1 [ Postpetition Claims ] § 137.1  Postpetition Claims before BAPCPA and 350.1 [ Postpetition Claims ] § 158.6  Postpetition Claims.

 

5  See § 131.1 [ Postpetition Defaults ] § 82.2  Postpetition Defaults.

 

6  See In re Minick, 63 B.R. 440 (Bankr. D.D.C. 1986); In re Canipe, 20 B.R. 81 (Bankr. W.D.N.C. 1982).