Chapter 13 bankruptcy is for reorganizing your debt without losing any of your property. A payment plan will be worked out to repay any past debt while continuing to pay your current bills. When you file Chapter 13 bankruptcy, the court will hold a confirmation hearing. The hearing is where the court decides to confirm or approve your proposed repayment plan. A judge will make the final decision on whether or not to accept the plan.
When your plan is confirmed your creditors must accept your payments to satisfy their claims, giving you a fresh financial start when the payment plan is over.
When you are making your plan you must:
- Show that you are using all of your disposable income that was calculated by bankruptcy rules.
- The length of the repayment plan must be three to five years depending on your case.
- You must pay your creditors in order of priority.
When is the Confirmation Hearing
The confirmation hearing must be held within 45 days after the 341, or creditors meeting. Depending on the court, most cases only attorneys attend the confirmation hearing. Creditors usually only attend if they have objections to your plan. If you are representing yourself, you will need to attend this meeting.
If your plan is objected to either by the trustee or your creditors, the paperwork must be filed before the confirmation hearing to give you time to prepare. The written objection will list the reasons why the court should not approve of your plan. The debtor can then file a written explanation to the court as to why the plan should be accepted. If the parties cannot decide on a repayment plan, the case may go to a judge to decide.
If you have questions about repayment plans in bankruptcy, contact a Hildago County bankruptcy attorney to get the information you need.