Confirmation

At the confirmation hearing, the bankruptcy judge will review the debt repayment plan and decide if it meets the standards set out in the US Bankruptcy Code. The confirmation hearing is critical to your Chapter 13 bankruptcy case because it is where the court decides whether to approve (or confirm) the proposed repayment plan. This is called Confirmation. At the Chapter 13 approval hearing, the bankruptcy judge will determine whether your Chapter 13 Plan meets the requirements of Chapter 13.

Your Chapter 13 plan must be confirmed by the bankruptcy judge. The Chapter 13 trustee holds these amounts until a judge approves your Chapter 13 plan, and once approved, the funds are paid to creditors. Once confirmed, the trustee will begin paying the creditors listed in the Chapter 13 plan from the monthly payments sent. If the court does not uphold the proposed plan, the Chapter 13 bankruptcy trustee will refund the amount paid, less the amount paid to ensure that the secured creditor (usually the holder of the car payment) is not financially damaged in the process of any sufficient security deposit.

Within 30 days of filing for bankruptcy, even if Plan A has not yet been approved by the court, individuals must begin making payments under the plan to the chapter 13 trustee. After the meeting of creditors, individuals, the chapter 13 trustee, and those creditors who wish to attend appear in court for a Chapter 13 Debt Recovery Plan hearing. The creditor (or trustee) will be required to file a statement of claim (complaint) within 60 days of the date set for the first time for the 341 Meeting of Creditors, the only court hearing that must be attended. The Bankruptcy Court must approve the proposed debt repayment plan, and prior to its approval, interested parties will have the opportunity to appeal it.

If, after confirmation, no objection is filed to the proposed plan change, the court is not required to hold a hearing. A party that does not like any provision of the plan can file an “objection” and the judge will decide on the matter at the approval hearing. The bankruptcy debtor and any opposing parties use the approval hearing to explain to the judge why their version of the plan needs to be confirmed and finalized. Within 45 days of the creditors’ meeting, the bankruptcy judge must hold an approval hearing and decide whether Plan A is feasible and meets the certification standards set out in the Bankruptcy Code. If the plan is not included in the Section 2002 Notice of Confirmation Hearing, the debtor must notify the plan the trustee, and all creditors when it is filed with the court. This rule allows a summary of the plan to be sent along with an acknowledgment hearing notice. An objection to planning approval must be filed and notified to the debtor, the trustee, and any other authority designated by the court, and delivered to the trustee at least seven days before the date set for the approval hearing.