What is a Confirmation Hearing in Chapter 13 Bankruptcy?

Confirmation Hearing in Chapter 13 Bankruptcy

Chapter 13 bankruptcy allows debtors to repay outstanding debt with a payment plan approved by the court.  But before the debtor can begin making payments on the agreement, it has to be confirmed upon finalization.  This means that parties associated with the agreement could object or make changes before confirmation.

In Chapter 13, other parties are subject to review details about your case to ensure bankruptcy laws are enforced.  This includes reviewing income details and expenses of the debtor.  The bankruptcy trustee may review information to ensure payments can be made to plan.  Creditors also have the opportunity to object if they feel they are entitled to larger payments. The mortgage company or vehicle lender could object if value is underestimated of the property in question.

The confirmation hearing gives the judge a chance to review and understand your plan.  The judge may ask questions about your plan, even if there are no objections from either party.  In some cases, a judge may make the final decision if parties are unable to reach an agreement.  A debtor may not be required to attend the confirmation hearing but it may depend on your court district.  Many allow the bankruptcy attorney of the debtor be present in representing their client.

Timing of the hearing may also vary depending on the district in which the case is filed.  It could be hours after meeting of the creditors takes place, weeks away or within 45 days of the creditor meeting.

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