Section 1127 - Modification of Plan
REORGANIZATION – CHAPTER 11
Modification of Plan –Section 1127
11 USCS § 1127
(a) The proponent of a plan may modify such plan at any time before confirmation, but may not modify such plan so that such plan as modified fails to meet the requirements of sections 1122 and 1123 of this title [11 USCS §§ 1122 and 1123]. After the proponent of a plan files a modification of such plan with the court, the plan as modified becomes the plan.
(b) The proponent of a plan or the reorganized debtor may modify such plan at any time after confirmation of such plan and before substantial consummation of such plan, but may not modify such plan so that such plan as modified fails to meet the requirements of sections 1122 and 1123 of this title [11 USCS §§ 1122 and 1123]. Such plan as modified under this subsection becomes the plan only if circumstances warrant such modification and the court, after notice and a hearing, confirms such plan as modified, under section 1129 of this title [11 USCS § 1129].
(c) The proponent of a modification shall comply with section 1125 of this title [11 USCS § 1125] with respect to the plan as modified.
(d) Any holder of a claim or interest that has accepted or rejected a plan is deemed to have accepted or rejected, as the case may be, such plan as modified, unless, within the time fixed by the court, such holder changes such holder's previous acceptance or rejection.
(e) If the debtor is an individual, the plan may be modified at any time after confirmation of the plan but before the completion of payments under the plan, whether or not the plan has been substantially consummated, upon request of the debtor, the trustee, the United States trustee, or the holder of an allowed unsecured claim, to--
(1) increase or reduce the amount of payments on claims of a particular class provided for by the plan;
(2) extend or reduce the time period for such payments; or
(3) alter the amount of the distribution to a creditor whose claim is provided for by the plan to the extent necessary to take account of any payment of such claim made other than under the plan.
(f) (1) Sections 1121 through 1128 [11 USCS §§ 1121-1128] and the requirements of section 1129 [11 USCS § 1129] apply to any modification under subsection (a).
(2) The plan, as modified, shall become the plan only after there has been disclosure under section 1125 [11 USCS § 1125] as the court may direct, notice and a hearing, and such modification is approved..
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