Bankruptcy Court Permits Plan Modification for Vehicle Surrender

Fri, 24 Apr 2026 02:07:11 +0000
Bankruptcy

The US Bankruptcy Court for the District of Utah granted the Modification Motion filed by debtors Mike G. Carter and Nichole Carter under 11 U.S.C. § 1329, permitting them to surrender their Kia Sorento to Goldenwest Credit Union rather than continue making payments under their confirmed Chapter 13 plan. The court held that plan modification under § 1329(a)(1)-(a)(3) is permitted even where the confirmed plan originally provided for direct payment to the creditor outside the plan. The Trustee objected to the modification; the Credit Union did not object. This memorandum opinion supplements the court's order granting the modification.