In the Matter of: Terrell

Bankruptcy Ct. erred in granting debtors’ motion under Rule 60(b) to modify confirmed Chapter 13 plan by eliminating priority creditor status of State of Wisconsin and by shortening plan’s duration from 60 months to 36 months. While Rule 60(b)(1) potentially provides avenue to accommodate debtors’ request to modify confirmed Chapter 13 plan, where debtors alleged that parties and Bankruptcy Ct. were mistaken in assumption that State’s effort to recoup overpaid public benefits to debtors entitled it to priority creditor status under section 507(a)(1)(B), debtors could not use Rule 60(b)(1) to effectuate requested modification, where debtors filed modification request more than one year after confirmation of Chapter 13 plan.Moreover, Ct. found that there was no other source of authority that would allow debtors to seek instant relief.