Attending a Confirmation Hearing? Here’s What to Expect
When filing Chapter 13 bankruptcy, debtors who have a steady income will put together a repayment plan that will resolve some or all of their debt over a period of three to five years. There are several steps to take when filing for Chapter 13 bankruptcy – meetings with attorneys, gathering your financial records together, proposing a repayment plan, a confirmation hearing to determine if the proposed plan is suitable for creditors, and the final meeting of creditors, which settles the entire thing.
When you’ve determined a repayment plan that will work for you If you’re filing for Chapter 13 bankruptcy, the final step before you can begin getting your finances back in order is a confirmation hearing. Often the meeting is between a judge, your attorney, the trustee, and your creditors. As the debtor, you are not usually required to attend the confirmation hearing, but you must attend the final meeting of creditors, which brings your Chapter 13 bankruptcy proceedings to a close.
What happens during a confirmation hearing?
A confirmation hearing is an attempt to persuade the judge to approve the payment plan you’ve proposed to your creditors. If the judge agrees, he or she will sign a formal Order Confirming Plan document, which usually happens if there are no objections from creditors or from the trustee appointed on your behalf as part of the proceedings. In most cases, if creditors object to the plan submitted to the bankruptcy court, your attorney and the bankruptcy trustee will attempt to settle any objections prior to the meeting.
When creditors object to your proposed plan, the confirmation hearing allows the bankruptcy court to decide if it will give the okay to the debtor’s plan despite objections from creditors. Creditors usually settle any objections prior to the meeting, but the confirmation hearing is the deadline for voicing any concerns, and they may come up. Creditors who have previously failed to protest any of the details of your payment plan may also do so at the confirmation hearing, so it could be a complex meeting.
On the flip side, an appointed trustee may decide that the proposed payments aren’t adequate or that the debtor will not be able to keep up with payments depending on their income. Disputes can include claimed expenses, assets, proposed payments, or the discharge of a debt.
Despite concerns from both sides, the judge presiding over the case can decide to make a ruling at the confirmation hearing to approve your proposed plan, allowing your case to move on to the final stage, the final meeting of creditors.
If you believe a Chapter 13 bankruptcy is right for your situation, don’t face it alone. Maxwell Dunn PLC has years of experience helping Detroit residents navigate the bankruptcy process. Contact us today for a consultation.See all videos