What is a Chapter 13 Bankruptcy Confirmation Hearing?

by DeLadurantey Law Office, LLC on January 26, 2012

For individuals who either do not qualify for Chapter 7 bankruptcy or want to pursue debt resolution through other means, filing for Chapter 13 bankruptcy may be a perfect option. This bankruptcy chapter lets debtors create a repayment plan to pay off debts over a three to five year period. The Chapter 13 bankruptcy process requires some specific steps before a bankruptcy judge can approve you, however. Namely, if you choose to file for Chapter 13 bankruptcy, you must go through a confirmation hearing so that your creditors and a judge can review and approve your proposed repayment plan.

Confirmation Hearing Specifics

After the creditors meet, a judge will hold a confirmation hearing within 45 days where he or she will review the proposed repayment plan and decide whether it meets the Bankruptcy Code standards. Some of the most common objections creditors or a judge have with repayment plans include the following:

  • The payments in the plan are less than the amount creditors would receive through a Chapter 7 bankruptcy filing
  • The debtor doesn’t commit to spending enough or all of his or her disposable income to repay debts
  • Part of the plan violates the Bankruptcy Code
  • The debtor forgot to include a creditor

If the court denies a plan, the debtor can either submit a revised plan or attempt to file for Chapter 7 bankruptcy.

If you are thinking about filing for Chapter 13 bankruptcy and have questions about creating a plan that is likely to be approved in your confirmation hearing, you need to speak with a qualified legal representative who has experience in bankruptcy law. Take action today by contacting a Milwaukee bankruptcy attorney with the DeLadurantey Law Office, LLC, at 414-377-0518.

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