Bankruptcy judges cannot force Chapter 13 debtors to waive the right to seek future modifications as a condition of confirming a Chapter 13 plan, the 5th U.S. Circuit Court of Appeals held Monday in a case of first impression for the circuit.
While bankruptcy courts have a duty to deny bad-faith modification requests, they cannot act on “speculation about an as-of-yet non-existent request,” the 5th Circuit said.
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